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No. 28,754 


PUBLISHED IN LONDON AND FRANKFURT 

Wednesday April 21 1982 


***30p 

CONTINENTAL SE1UNG PBICES: AUSTRIA Sdi. IS; BELGIUM Fr30; DEM MARK Kr 6.50; FRANCE Fr5.0Q; GERMANY DM Z.D: ITALY L 1.000; NETHERLANDS R ?.» ; NORWAT KrG.00; PORTUGAL Esc BO: SPAIN PtaS5; SWEDEN Kr 6.00; SWITZERLAND Fr 2.0; EIRE 42p; MALTA 30c 


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NEWS SUMMARY 


GENERAL 


BUSINESS 


Wave of . £ and $ 
Ulster ease; 


car 

bombings 

A number of civilians were hurt 
io Strabane, Co. Tyrone, in one 
of five car bomb attacks in 
Northern Ireland last night. 

The attacks came after an IRA 
warning to the police that recent 
street violence was only a taste 
of what it had -in store to mark 
the first anniversary of the 
Maze hunger strike deaths. 

Police said the other ex- 
plosions were in Londonderry, 
Ballymena, Besshrook and 
Belfast 

Schmidt appeal 

Chancellor Schmidt of West 
Germany appealed to his Social 
Democrat Party to end internal 

# virions and back Nato strategy 
on nuclear missiles. Page 2 

Resignation offer 

* n Israeli Government Minister 
convicted of stealing public 

ids offered . to resign his 
Cnbinol seal, averting an 
immediate threat to Premier 
login's coalition. 

Spy suspect held 


sugar 
off £6 


• STERLING eased to 81.7655, 

down 5 points, DM 4.235 (DM 
4-2675). FFr 11.05 (FFr IL1). 
SWFr 3.4425 (SwFr 3.48) and 
V429 (Y434.5). Its trade- 

weighted index was S9.8 (S9.9). 
Page 36 

• DOLLAR weakened to 
DM 2:3965 (DM 2.4155), 
FF- 6.258 (FFr 6.283). SwFr 
L948 (SwFr 1.9675) and Y242.8 
(Y245.8). Its index was 1132 
(115.9). Page 36 

0 EQUITIES drifted, awaiting 
the Cabinet response to 
Argentina’s Falk lands peace 
formula. The FT 30-share 
index, op 6.9 at 1 pm, closed 
4.5 higher at 562.6. Page 35 

• GILTS rose on sterling’s 
firmer trend aginst the dollar. 
The Government Securities 
index dosed 0.39 up at 67.45. 
Page 35 

0 WALL STREET was 3.04 
down at 843.04 near the close. 
Page 34 


0 GOLD fell 55.25 to $342.75 
in London. Page 30 

A suspected Hungarian-born 
spy was arrested carrying U.S. 0 SUGAR daily raws price 
military secrets less than four closed £6 lower in London at 
hnurs before he was due- to 
leave for Europe, a U.S. Federal 
official said. 


Space mission 

The Soviet space station suc- 
cessfully launched into orbit 
i his week will be used for a mis- 
sion by a Soviet-French crew 
in June. 

Choice astronauts 

The first woman and the - first 
hlack astronauts' to be selected . 
for a L'.S. spare mission -were 
named. Sally Ride and Guion 
Biuford win be on the seventh 
and eighth .shuttles. . . 

School fees 

Fees for boarders at the best- 
known independent schools 
average more ihan £1,100 a 
term, according to 4he schools' 
information service. Page 10 


IBOi 


£ per tonne 


170f~ 


160h 


ISO, 


140 



-London -OaHy Price 


N D J F . M ALwJ 
1981 1982 


£120 a tonne on reports of sell- 
ing by Thailand and Florida 
producers. Page 30 

0 CHICAGO Mercantile 
Exchange’s stock index futures 
contract failed to be halted by 
a Kansas court move. Page 30 

Pope’s dais razed # queen’s award for 

Export this year went to 91 
companies and for Technology 
lo 19. Back Page; Pages 28 and 
29 


Arsonists destroyed a wooden 
dais in Cardiff from which the 
Pope was due to celebrate Mass 
lo 350,000 people on the last 
day of his visit to Britain in 
June. 


Heart man dies 

Heart transplant patient Paul 
Essen' died at Papworlh 
Hospital, Cambridgeshire, the 
second in 24 hours. 

Hindley’s term 

The release of Moors murderers 
Myra Hind ley and Ian Brady 
will not be. considered before 
January 19S5 ai the earliest, 
said Home Secretary William 
Whitelaw. 

Drought eased 

Heavy rain fell in Peking for 
the first time since last autumn, 
easing the severe drought that 
was threatening this year’s 
harvests. 

Pop rejected 

An article in a Soviet ynuih 
paper entitled Disco's Dark Side 
urged readers to reject western 
pop music in favour of “ real 
culture." 

Save rhino plan 

Tanzania plans to train 1,000 
personnel for anti-poaching 
duties in an effort, to save the 
rhino from extinction. Poachers 
hunt it for its " aphrodisiac " 
horn. 

Briefly 

Prince Charles will make two 
dives to The Tudor warship 
Miry Rose next week. 

Danish fishermen in the North 
Sea rescued a red deer stag • 
swimming towards Britain. 


0 NIGERIA is expected to 
introduce new import curbs. 
Page 4 

9 ECONOMIC policymaking in 
industrial countries can be more 
flexible because of the oil prices 
■fall. New York Federal Reserve 
president Anthony Solomon 
said. Back Page 

0 LOCKHEED of the U.5. said 
*• all but a handful " of 43 
options for its L-lflII TriStar 
had been cancelled. The air- 
craft is being phased out of 
production over the next two 
years. 

0 PERKINS of the UK is 
supplying diesel engines- to 
China for four-wheel drive 
vehicles that are believed to be 
its first for export. 

0 LIVERPOOL DOCKERS stage 
a 24-hour strike from 8 am 
today. Page II 

0 AGEMASPARK, the high 
technology precision engineer- 
ing company and holder of the 
Queen’s Award of Export, went 
ierto receivership. Back Page 

0 REPUBLIC STEEL, the 
fourth largest U.S. steel pro- 
ducer, announced a first-quarter 
net loss of $28.5m (£15.8m) 
compared with a profit of 
$32. 6m in the same period a 
year ago. 

0 SMITHS INDUSTRIES, whose 
interests include aerospace, 
automotive and medical pro- 
ducts, lifted pretax profits to 
£11.17m (29:97m) in the 26 
weeks- to January 30. Page 22; 
Lex, Back Page 


Pym taking UK peace plan to Washington 


BY PETER RIDDELL, POLITICAL EDITOR 


MR FRANCIS PYM, the Foreign 

Secretary, will fly to Washing- 
ton tomorrow with Government 
proposals for a peaceful solution 
to the Falklands crisis. 

They will be presented as a 
counter to the Argentine plan 
produced in Buenos Aires on 
Monday, lo which London has 
major objections. 

The 'Government is seeking 
to keep its diplomatic options 
open for as long as possible, 
though time is short, with the 
naval task force due to reacb 
the Falklands area in the next 
few days. 

Some Tory MPs last night 
were speculating that the task 
force might arrive when Mr 
Pym was in Washington, and 
that pressures on Argentina 
might be maintained by action 
at South Georgia, the Falklands 
Dependency, but there was no 
official comment in London. 

In other developments in the 
crisis yesterday: 

• Argentine Foreign Ministry 
officials said that they were 
“ very pessimistic ’’ about 
chances of a peaceful solution 
to the dispute following the 
cool reception by Mrs Thatcher 


lo the la lest proposals. 

0 Mr Alexander Haig, U.S. 
Secretary of State, arrived in 
Washington from Buenos Aires. 
U.S. officials said that his letum 
home might “force" both 
Britain and Argentina to lake 
a hard look at what they could 
accept to avoid war. One said 
it was best at this point lo let 
botb sides, but' especially 
Argentina, “ sweat a little." 

0 Reports that some British 
warships had left the naval task 
force and were heading for the 
island of South Georgia were 
denied by the Defence Ministry 
in London. 

The Cabinet met for an hour 
last night to hear a progress 
report on the talks and discuss 
the broad outlines of Mr Pym’s 
brief for his Washington talks. 

The signs were that the 
Ministers were agreed about the 
further attempt lo seek a 
peaceful solution, and that 
there should be no shift in the 
kgy British conditions involv- 
ing: total withdrawal of 

Argentine forces: no joint 
administration; and the need to 
make the views of the islanders 
paramount. 


. Mr Pym who won support last 
night from' Tory MPs, will 
prepare detailed proposals 
today, which apparently is why 
be is noL going lo Washington 
until tomorrow. He is expected 
lo stay in the U.S. for n couple 
of days. 

No details were available in 
London either of the Argentine 
proposal's or the British 

courier-proposals. 

But.il is evident from Mrs 
Thatcher’s comments in the 
Commons yesterday thti there 
are a numcer of objections to 
them. though she only 
mentioned the failure lo lake 
account of the islanders’ wishes 
and the unacceptable proposal 
for joint policing. 

Britain is keen not to reject 
the proposals outright, though 
the objections are fundamental 
but to build on them in an 
attempt to win, back the diplo- 
matic initiative. 

Mrs Thatcher stressed in Ihe 
Commons that the ideas brought 
out of Buenos Aires by Mr 
Haig, were only one stage in rhe 
negotiating process, which was 
now being continued. 

She refused to be drawn on 


suggestions by Labour leaders 
that the UN should become in- 
volved as an interim administra- 
tor. 

She said it would be belter 
not to get wires crossed at pre- 
sent. This is a particularly 
sensitive area, partly because of 
the objections of many Tory 
MPs io any -UN involvement. 

There was general support at 
Westminster yesterday for Mr 
Pym's visit to the U.S.. though 
there are increasing signs of 
strain in the previous all-parly 
agreement for the Government's 
approach. 

On the Labour side many MPs 
believe that the Argentine pro- 
posals are a basis for negotia- 
tion. even if they fall short of 
an acceptable settlement, and 
that it would be wrong to risk 
a war by being too stubborn 
now. 

Labour is likely io press for 
UN involvement, and Labour 
leaders arc clearly looking for 
ways of distancing themselves 
from the Government if military 
action looks probable. 

It was also noticeable 
yesterday that Mr David Steel, 
the Liberal leader, said that the 


wishes of the islanders should 
not be made paramount, but 
that their, interests should be 
"uppermost in the minds" of 

MPs. 

This view is- shared by only 
a handful of Tory MPs. and 
Ihcre was criticism of Mr 
Steel’s slatcmenl nnt only by 
the Prime Minister, but also 
generally from the Tory 
benches.’ 

These disnsreemcnls may 
become greater if armed conflict 
occurs. 

Some doubts arc being 
expressed on the Tory side, but 
only a handful, possibly a dozen 
nr I wo MPs, privately say that 
armed conflict should be 
avoided at nil costs. 

The predominant view was 
expressed at a private meeting 
of the Tory backbench Foreign 
Affairs Coniniiilee that the 
Government should remain 
rrsolule. reject the Argentine 
proposals, and not compromise 
on any basic condition. 

While there is still a general 
preference for a peaceful 
Continued on Back Page 
Falklands News, Page 4 

Editorial comment. Page 20 


Platform builders to cut 
jobs as N. Sea orders fall 


BY RAY DAFTER, ENERGY EDITOR 


MORE THAN 2,000 workers in 
the UK offshore oil construction 
industry are facing redundancy 
as platform builders and their 
suppliers face a crisis shortage 
of North Sea orders. 

The industry warned yester- 
day (liat many more of its 
25,000 workforce could lose 
their jobs unless orders for pro- 
duction platforms and associated 
equipment are placed hv the 
end of the year. Hundreds of 
jobs have already been lost so 
far this year, most of them in 
Scotland and the north east, the 
main centres for the offshore 
supply companies. 

At the moment the industry 
is working through orders which 
resulted mainly from field 
development • programmes 
started in the late 1970s. The 
last major project involving 
the construction of a pXform — 
the Hutton Field development — 
was given the go-ahead *n 
August 1980. 

Hopes for new orders in tljc 
near future rest largely with 
three groups: British Gas Cor- 
poration which is planning the 
£lbn development of its More- 
combe gas field in tiie Irish Sea 
and the modification of the 
Rough gas field in the North 
Sea: British National Oil Cor- 
poration which intends to ex- 
ploit its Clyde oil field; and 
Total/Elf which is evaluating 
the development of its AJwyn 
oil and gas field. 

British Gas is expected to 
start ordering platforms shortly. 
BNOC is unlikely to be in a 
position to place a platform 
order before the end of next 
year or early 1984. Total has 
still to take a decision on 
whether to exploit the Alwyn 
Field. 

If British Gas does not fill 


3,000 


2,000 


1,000 



JL 


BRITISH 
V COlffMeTOBS 


19747576 77 7879 '80 ’ 81 * 

Source :Deoto/fnergy 'indtolrv eshmdlr 


Public borrowing 
well within forecast 

BY MAX WILKINSON, ECONOMICS CORRESPONDENT 


the yards — and :h*>‘ riTC.i U--i 
fcL.ui likely— wc couid oc face-1 
with massive redundancies.” 
said -Mr -John Bolt, chairman of 
the Module Constructors' Asso- 
ciation which represents com- 
panies buildin/ modular equip- 
ment’ for platforms. 

Several companies have 
already issued .statutory pre- 
cautionary 90-day redundancy 
notices! They include; 

• Lewis Offshore, Stornoway in 
the Outer Hebrides — notices 
served on 404 employees earlier 
this month. The fabrication 
yard has virtually run out of 
work. Lewis Offshore says lhal 
if no new contracts are secured 
within three months the yard 
wilt be closed and retained on 
a care and maintenance basis. 
0 Ayrshire Marine Constructors, 
Hunterston, Scotland — 'notices 
served on 800 of the 1.050 site 
workers within the past few 
days. The company’s sole 
remaining contract — work on 
rhe Maureen Field production 
platform — is due to end towards 
the end of the year. 

0 Charlton Leslie module 


builders, at Wallsend on Tyne- 
side in . the norUi east of 
England — notices served on 
more than 200 staff about a 
month ago. The group, currently 
working on modules for the 
Brae Field until the summer, 
is seeking new work. The 
company said yeslerday that it 
may not need to lay off its 
workforce. 

0 The William Press Group, 
with two module construction 
sites on Tcesside— notices 
served on 900 workers in 
November. Since then the work- 
force has been cut by about 
300. J 

The Government has been i 
warned • of -the plight of the 
off'hiii-'! vupplies -industry hy 
trade associations and the In- 
dustry . Department’s own 
agency, " the Offshore Supplies 
Office. Industry officials said 
yesterday that Ihe oil producers’ 
ordering programme had been 
hit by uncertainties about i 
future crude oil prices, in- 
flation, and Government 
taxation policies. 

Mr John D’Ancnna. director 
general of the Offshore Supplies 
Office, however, said he was 
encouraged with tbe way com- 
panies were trying to find work 
overseas. 

The gloomy prospects over 
the next year or so are in sharp 
contrast with the offshore 
market last year. It is expected 
that the Government will soon 
publish figures showing that in 
1981 oil companies ordered 
almost £3bn worth of equipment 
and services compared with 
£2.4bn worth of contracts 
placed in 1980. 

Energy Review, Page 8 

Esso attacks offshore (axes, 
Page 9 


PUBLIC SECTOR borrowing 
for the last financial year will 
he shown to be significantly 
below the £9bn expected by 
the CHy — a figure which is 
itself £lbn lower ihan the 
Government had been expect- 
ing. 

The extent of the differ- 
ence, which win be shown in 
figures lo be released to- 
morrow. has puzzled ‘White- 
hall and ministers. 

It shows that the Govern- 
ment’s fiscal stance last year 
was tighter than intended, 
and raises questions about 
whether borrowing will con- 
tinue to be lower than 
predicted in the current year. 

The figures should provide 
a welcome though modest 
boost to the Government's 
hopes for an easing of 
interest rates. However, this 
may not be feasible while the 
markets remain nervous 

Last week Central Statis- 
tical Office figures showed 
that the Central Government 
Borrowing Requirement was 
£7.56 bn, £1.18bn Ires than 
predicted in the Budget fore- 
cast in March. Tomorrow's 
figures will show that local 
authorities also borrowed 
less than expected last year, 
so that the total difference 
could- bo nearer £1.5bn than 
£lbn. 

The difference, though 
large, is within (he margins 
of error for predicting a 


quantify which is notoriously 
difficult to estimate. On 
balance. Ministers will be 
pleased that borrowing was 
'less than the target, particu- 
larly in view of the faet that 
the target was overshot by 
£4.5bn in 1980-81. 

The reasons for this year’s 
relatively low figure are still 
not clear (o the Treasury. 
The most likely explanation 
appears to be lhal 
nationalised industries, local 
authorities and central 
government departments all 
spent less than expected. 
Local authorities, for 
example, may have been 
holding back on capital 
spending because of a wish to 
save revenue for staffing 
and other costs. 

It seems unlikely that the 
Chancellor nil! respond lo 
the figures hy making any 
adjustments lo the tax regime 
or to spending plans for the 
current financial year, 
although he might come 
under .some pressure to do 
so. if it appeared lhal 
borrowing were likely to con- 
tinue at a depressed level. 


£ in New York 

— April 19 | Provious 

• I 


Spot U 1, 7720 7740 S1.760S.76E5 
l month p_2&-0.3i pm 0.30 0.5S pm 
5 months 0.76-0.81 pm 0.79 0.84 pm 
12 morrths'2.15 ZJ5 pm . 3.15 2.25 pm 


CHIEF PRICE CHANGES YESTERDAY 


(Prices in pence unless otherwise 
RISES 

Trcas 12Jpe 1992...£94} • + X 
Assed Brit Foods... 134 + S 
Alexanders Dscn.1 21S + 13 

Amcrsham 200 + 7 

Assed. Dairies 130 +. 6 

Bodycote 58 + 4 

British Printing ... 41 + 3 - 

Chubb 121+7 • 

CoabTe 116 + 6 

Davy Crpo J42 + 7 

Dentsply OpcConv 

3991-90 £86+211 

Foster Brothers 60 + 5 
Gen & Commercial 24S + 13 

Glaxo ; 621 + is; 

Hadcn - 207 +-J2 ' 

Ham torn Life 294 + 9 

Hams Quccosway... 152 + .10 
Johnson Mailboy ... 257 + D 
Mcnzics (-T.) 253 + 17 


indicated) 

Mercantile House ... 390 

Meta! Box 156 

Pilkington - 253 

Refuse Assurance... 228 

Royal Ins 340 

Sainsbury (J.) 590 

Sotaportex 100 

Speedwell 23 

Stndrd Telephones 533 

Tilbury Grup 380 

Union Discount ... 430 

Webslers 421 

Charterhouse Pet ... 77 

KCA lnlnl 95 

Ultramar 405 

RTZ 438 

FALLS • 

Channel .Tunnel ...128 

Smiths Inds 338 

Angln Amer Crpn... 505 


15. 

10 

13 

10 

10 

20 

20 

3 

11 


+'40 
+ -20 
+ 4J 
+ 4 
+ 8 
+ 13 
+ 6 


- 20 

- 7 

- 15 


Italy questions Acclaim’s parentage 

BY KENNETH GOODING. MOTOR INDUSTRY CORRESPOND EN T, IN TURIN 


THE ITALIAN motor industry 
wants its government to rule 
that the Triumph Acclaim, 
built by BL in Britain under 
licence from Honda of Japan, 
is a Japanese car. 

Tbe Italians insist that the 
UK content of the Acclaim is 
only 60 per cent, nnt enough 
to entitle the car being called 
“ British." 

BL says the Acclaim is “70 
per cent British, measured by 
ex-factory price.'- 1 

If the Italian- Government 
backs its local industry’s view, 
the Acclaim would, count 
against the very limited 
Japanese car quota of 2,000 a 
year in the country. 

The car was launched in Italy 
amid an expensive advertising 
campaign last month. 

Anfia, the Italian motor 
industry -trade association, wants 
to use the Acclaim as a test 


case because it expects that 
similar deals between Japanese 
and European producers will 
emerge in the future. 

Anfia also wants to put 
pressure on the EEC Commis- 
sion to come up with clear 
guidelines on when a car can 
be counted as “ European.” 

' BL hopes to sell about 5,000 
Acclaims in Italy in the -first 
year after Ihe launch with Ihe 
car playing a major part in its 
sales recovery there. 

Any move by the Italian 
authorities might also influence 
the Aelaim’s position in other 
Continental markets. BL’s tar- 
get is to sell J.5.000 Acclaims on 
tbe Continent this year and the 
company says that demand so 
far, particularly in France and 
Holland, has been above fore- 
casts. 

Tbe outcome of the Italian 
industry’s plea would also have 


implications for Alfa Borneo’s 
plan to make a car jointly with 
Nissan of Japan in southern 
Italy and for Nissan's decision 
about a car plant in the UK, 
which it has been considering 
for more than a year. 

Sig Vittorio Ghidella, man- 
aging director of Fiat Auto, 
which dominates the Italian in- 
dustry. said yesterday that bis 
company did not fear the 
Japanese if they intended lo 
manufacture cars in Europe. 
But if they intended to assemble 
cars from imported low-cost 
Japanese components, it was a 
cause for concern. 

“The Common Market must 
defend itself from the 
surreptitious introduction of 
Continued on Back Page 
Hopes for Metro sales in Europe, 
Page 10 

Layoffs at Longhridgc, 

Back Page 


CONTENTS 


Cork report on insolvency: the .inten- 
sive care dilemma 20 

A trauma for Texas: Braniff’s future in 

the clouds 21 

Energy review: high oil and gas stakes 

in Atlantic Canada S 

Commercial law: interest-free commer- 
cial loan not a “settlement” ...... 17 

Gardens today: shrubs— a list of 
winners 17. 


Management: a new era for industrial 

training 18 

Editorial comment: Falklands; Arab 

conflicts 20 

Lombard: Nicholas Colchester on a 

shock, after the oil-shock 21 

Technology: safety of nuclear pressure 

vessels 27 

Surveys: Asian Dev. Bank inset 

Intnl. storage and handling ... 13-16 


Israel 
razes last 
of Sinai 
villages 

By David Lennon in Tel Aviv 

ISRAEL is destroying Ihn 
houses and farms it hui! I in 
Sinai before it returns ihe 
area to Egypt on Sunriny. 
Bulldozer* and cranes have 
been busy demolish ms houses 
and uprooting trees in a rush 
of last minute destruction. 

“ In 1967, when wo captured 
(he area, we found -only sand 
dunes,” an Israeli official said 
in Yamil yesterday. “Sand 
dunes is what the Egyptians 
will find when they return 
next week." 

Israel has invested nmre than 
SIbn building 15 settlements 
in Sinai over the past 15 
years. Because of delays 
deciding what to dn ahnut 
these villages before next 
Sunday’s withdrawal, only a 
very small proportion nf the 
investment has been recovered 
hy dismantling and transfer- 
ring the structures and equip- 
ment to Israel. 

The destruction should reach it* 
peak today or tomorrow, after 
the army finishes evicting the 
die hard settlers and pro- 
tesiors si ill living in the 
Ynmit urban settlemenis on 
ihe Mediterranean coasl in 
north eastern Sinai. 

The army intends to raze the 
1,000 housing units which 
comprise the township and 
were built during the 1970s. 
According lo Israel radio re- 
ports. which the army spokes- 
man's office was unable lo 
confirm, the plan is to dig 
huge trench cl in and around 
ihe town and bulldoze the 
houses inio ihem and then 
bury them. 

This is lo prevent Egypt taking 
over (he villages, which were 
built as a buffer between the 
Sinai and Israel. The Gov- 
ernment apparently fears that 
if Egypt was to inherit the 
homes intact. It would im- 
mediately install same of its 
own people in the settlemenis 
close to the Israeli border. 

This possibility was viewed hy 
some Israelis as a potential 
Uircal to the country's 
security if the peace process 
fails. However, others who 
have lived in the settlements 
and helped to develop the 
agricultural potential of the 
area have described the cur- 
rent rampage of destruction 
ns " madness." 

While mnsi Israeli settlers were 

. angry at being forced to leave 
(he area many felt that their 
achievements in Ihe region 
could have been used for the 
benefit of others. A number 
of former settlers said they 
were shocked In learn that 
oven the trees they had 
planleri were being uprooted. 


FACT 


American News ... 

Appointments 

Arts 

Base Rates 

Commoditise 

Companies UK . . 

Contracts 

Crossword 

Ontertain. Guide ... 
European Nows ... 

Euromarkets 

European Options 
FT Actuaries 


5 

35 

19 

24 

30 

22-26 

35 

19 

19 

2.3 

31 

25 
35 


Foreign Exchanges 

Gold Markets 

Inti. Companies ... 
Loader Pag* . .. . 

Letters 

Lex 

Lombard 

London Options ... 

Management 

Mon and Matters 

Mining 

Money Markets ... 
Overseas News ... 


36 * Parliament 12 

30 Racing 17 

31-33 Share Information 38, 33 

20 Stock-Markets; 

21 London 35 

40 Wall Street 34 

21 - Bourses 34 

26 Bourses 34 

18 Technology 27 

20 TV and Radio 17 

2S UK Nows; 

36 General 3, 10 

4 Labour • 11 


Unit Trusts: 

Authorised 36 

Others 37 

Weather 40 

World Trade News 6 

ANNUAL STATEMENTS 

Gen. Accident 23 

Hepworth Ceramic 22 

London Institute ... 33 

Renown 18 

Ruberold 2S 

Scottish ttfo 24 

Ultramar 2S 


For latest Share Index phone 01-346 602$ 


DEDICATION 

In the Eurobond issuing 
business, some banks believe 
in long-term 
commitment. 


In Paris and London, we 
make a market in all our 
issues and many others. 
Compare secondary market 
prices of our issues with 
others: the explanation is 
simple - Credit Commercial 
de France cares. 


CREOT COMMERCIAL 
DE FRANCE 



For constant attention to the performance of your issue, 
call in CCE And remember, we offer proven capability to lead 
successful issues, placing capacity, and a flair for innovation. 
Telephone Paris 720 9200, telex 620086. 





2 


Financial Times Wednesday April 21' 19S2 


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EUROPEAN NEWS 


Polish demand to reinstate unions 


BY CHRISTOPHS? BOBINSKl IN WARSAW 


THE LEADER of Kazz, Poland's 
confederation of independent 
trade unions which represents 
about Its members, has 
demanded that ah the anions 
suspended * last December, 
including Solidarity, be re- 
instated immediately. 

Mr Bogdan Fiutowski, of the 
small computer programmers’ 
union and chairman of Razz, 
produced .some consternation 
when be made the demand last 
weekata special conference on 
tiie future of unions at the 
Communist Party college, a 
bastion of party dogmatism. 

He called for the return of 
tbe unions, even under martial 
law, and said that M their 
absence is a threat to our 
national survival.* 

Against the background of the 
lack of progress in relations 
between Solidarity and the 
authorities, Mr Fintowski's 
finely balanced speech repre- 
sents the first coherent presen- 
tation in public of a framework 
for a -possible modus vivendi 


between an autonomous and 
pluralistic union movement and 
the Communist Government 

Kazz proposes the establish- 
ment of an independent union 
movement inside the system, 
an idea once accepted by 
moderates in the party but dis- 
carded last year and now little 
supported in the establishment' 
The Kazz confederation, over- 
shadowed by Solidarity last 
year, grouped some 32 unions 
of various sizes which wanted 
to remain Independent both of 
the free trade union and the 
loyalist “ branch ” unions. 

None of the movement's 
activists were interned on 
December 13 when martial law 
was imposed and the authorities 
have refrained- from attacking 
Kazz. However, some like Mr 
Tomasz Bartoszewicz, an adviser 

who represented Kazz at the 
International Labour Organisa- 
tion in Geneva last year, are 
now losing their jobs. 

Mr Fiutowski demanded in 
his speech -that neither Kazz 


nor Solidarity be allowed to 
disappear and that the unions 
must be autonomous. He 
criticised the Govenrment- 
sponsoztd discussion on the 
future of the muons and 
charged that media policy was 
befog run “as if someone 
didn't want to see the unions 
back again.” 

He added, by way of conces- 
sion, however, that the unions 
must set aside any thought of 
bringing about fundamental 
changes in the political system 
and must stick to representing 
their members’ interests. 

They “must work to 
strengthen the Socialist system 
in ouir country” he 'add. This, 
also meant that while the Com- 
munist Party nrusj remain a 
partner for the unions in day-, 
today matters, on the wider 
issues, like foreign policy, the 
party and the unions must work 
together. 

In a strong plea for the 
unions' independence, Mr Fiu- 
towsfci said: M On all the detailed 


problems connected with the 
construction of socialism, 
unions, must above all’ tw««. 
sent their members' interests 
and thus maintain -their 
opinions.” He added: "ActfaSI 
hostile to the . system and ou? 
economy should be eUStinated 
wxtb aft the due severity & £ 

Tins would mean that 
rations wanting toresuneopem. 
nkms would have to toed tho*. 

- activities deemed hostile to the 
authorities, although Mr Pinto*, 
ski’s statement Is also vhuj* 
at axdsmanagemem of the 
economy. “There is no room for. 
enemies of our sorie^” hg- 
added. Indeed,- ^he-iRan 
demand that " unions reton 
even under martial law implies 
that it is ready to condone con. 
tinned internmettt. . 

Mr Fiutowski noted tn his 

speech that the independence 

of Solidarity must be safe- 
guarded but he clearly beliefs 
that the 10m -strong union must 
agree to leadership changes 


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French industry sees little hope 
of output rising in near future 


BY DAVID WHITE IN PARIS 

FRENCH INDUSTRIALISTS 
expect little change in average 
production levels over the next 
few months, despite a recent 
upturn in the consumer goods 
sector. 

This is the conclusion of the 
latest Bank of France survey 
carried out at the beginning of 
tikis month. The overall cMmate 
is expected to improve only 
-very slowly, and not enough to 
encourage the new investment 
which the Government is seek- 
ing in its drive for new jobs. 

The survey coincides with 
publication of official Febroay 
figures showing a drop in the 
industrial production index to 
127 from 128 in January. The 
seasonally-adjusted figure. 


which excludes the building in- 
dustry, compares with a level 
of 130 in February last year. 

According to the Bank of 
France, however, the trend im- 
proved In March with a return 
to the gradual growth seen at 
the end ' of list year. This 
recovery has taken place mainly 
In consumer products, such as 
clothing, household equipment 
and particularly cars. Indus- 
trialists in these sectors expect 
activity to continue expanding 
but at a slower rate. 

On tbe other hand, output of 
Intermediate products, after 
gaining somewhat from this 
tread in March, is expected to 
fall back in the short term. The 
same goes for capital goods. 


where the situation remains 
unchanged in the face of weak 
export demand. 

The -Basok underlines the 
problems that many companies 
are experiencing In trying _ to 
keep . prices . competitive with 
European and Japanese rivals. 
It notes frequent complaints 
from industrialists about 
shrinking margins on both the 
export and the domestic 
markets and fears of further 
pressure from higher wage and 
social charges and the tacreased 
cost of dolUr-denominated 
imports. 

In general, domestic demand 
was mote active to March, but 
export orders were slightly 
down.. 


Communists to back Kyprianou 


BY ANDREAS HADjIPAPAS M NICOSIA 

THE CYPRUS President, Mr 
Spyros Kyprianou, yesterday- 
declared his decision to seek 
re-election at. the head of a 
political alliance That will 
include Ake], the powerful ■ ■ 
Communist Party. He made 
the announcement at the same 
time as making sweeping . 
changes in his government in 
which all but three ministers 
were replaced. 

A presidential election is 
due next February when Mr 
Kyprianou’s five - year term 
expires. 

The pact between Dflco, Mr 
Kyprianou’s centre-right Demo- 
cratic Party, and Akel came in 
the form of an 11 -page docu- 
ment laying down a “ minimum 
joint programme ” which would Mr B 
form the bams of a new govern- 
ment’s "policies- . 

It said Cyprus would follow 
an “ anti-imperialist " policy, LL^* 
strengthen its co-operation with 
the non-aligned movement and 
■reinforce friendly ties with the 
“ Socialist countries which have P 017 „ 
been the island's main sup- 
porters both within and outside 2X1(1 m 
the United Nations.** On t 

The document stressed, how- tkm ol 
ever, that the new alliance was express 
not seeking to change the commu 




ki **■* 

•W#' 


Mr Kyprianou ... to seek 
re-election 

island’s economic and social 
structure. This is an evident 
attempt to allay fears among 
many of Mr Kyprianou’s sup- 
porters who dearly favour con- 
tinuation of the free economy 
and free enterprise system. 

On the prdJlem of the parti- 
tion of Cyprus, the document 
expressed support for inter- 
communal talks under United 


Nations auspices,' called for 
efforts to achieve recbncfllatUra 
and rapprochement between ! 
Greek Cypriots .and Turkish 
Qypriots and stressed the need 
to search tor- a peaceful settle- 
ment 

An A&ei-DQco affiance, in fact, 
has been in force informally 1 for 
more than, a year as Mr 
Kyprianou has had to rely on 
the Comxnnnists 1 strength to 
push legislation through Parlia- 
ment- • 

In Parliamentary elections 
last May, tbe Moscoworientated 
Akel polled 32.8 per cent of the 
vote, while Mr Kyprianou’s 
Diko gained just under 20 per 
cent . . On this basis Mr 
Kyprianou would win a . presi- 
dential election outright 

The other dedaxed candi- 
dates are Mr Giafkoe Cleridefi, 
leader of the pro-Western Demo- 
cratic RaEy which won 32 per 
cent of the votes last May and 
Dr Vassos Lyssarides, whose 
Socialist party polled 8 per cent 

Mr Nicos Rdandis, the Mini- 
ster of Foreign Affairs, and Mr 
Chxistodolos Veniamin, - tbe 
Minister of Interior and 
Defence, have retained; their 
positions In the cabinet shuffle. 


Portuguese 
bank lifts 
base rate 

By Diana Smith in Lisbon ~ 

The Bank ■ of Portugal has 
Increased its basic rate by 
one point to 19 per cent — 
the first adjustment since 
1978. This -Is 'part -ol. sweeping 
measures introduced yester- 
day by tfae Mizastiy of Fin- 
ance to the hope of restrain- 
ing excessive credit demand, 
of stimulating Investment and, 
by Inference, reducing the 
harden of Portugal’s short- 
term foreign debt, which is 
30 per cent of the - $10bn 
foreign debt •' 

Commercial interest rates 
have been raised by two 
points to a range of 23 per 
emit on 90-day operations to 
26 per cent over five months 
or more. At the same time, 
the bank’s compulsory 
reserves have been Increased 
to 12. per cent of deposits of 
less tium one year and 9 per 
cent of deposits of more than 
a year.- 

Sr Joao - Salguetro, tile 
Finance Minister, said banks 
had -been Instructed to be 
more selective with : credit, 
ending- eight ye&rc of indis- 
crimlnate lending. 

. Privileged interest rates 
fra agriculture and .foreign 
trade are to be reviewed. The 
privileged rates win decrease 
tor short-term operations and 
increase on long-term ones. 
Meanwhile, export credit 
facilities wilL no longer he 
automatic. They will be given 
preferentially to new products 
or new markets. 

to an effort to streamline 
management of the weighty 
public sector, the Government 
has created the Institute of 
Financial Management at 
Public Companies, a holding 
company on the Italian model 

The cumbersome national- 
ised sector has been run until 
now by several ministries. Sr 
Salgueiro voiced the hope 
that the new Institute would 
provide flexible, professional 
management. 

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Spanish coup trial may drag on into summer 


BY ROBERT GRAHAM M MADRID 


SENTENCING in the court 
martial of the 32 officers and 
one civilian accused over the 
attempted coup of February, 
1981, is unlikely before June. 
This is the view of Sr LeopoHo 
Calvo Sotelo, the Spanish Prime 
Minister, and underlines that 
the two-montbs-old trial is prov- 
ing far more protracted than 
expected. 

The trial’s leisurely pace was 
underlined yesterday by a 
decision to adjourn for a week. 
This followed the winding up 
of evidence heard from wit- 
nesses called by the accused. 
Originally, 69 witnesses were 
called to give evidence. How- 
ever, the defence lawyers on 
Monday decided not to call 20 
of these, mostly minor figures. 

. This left only two witnesses 


outstanding. Tfae first of these 
was Sr Enrique Mugica, number 
three in the Socialist Party 
hierarchy, and the sole politi- 
cian called to' give evidence. 
He had been summoned by toe 
defence of Gen Alfonso Armada, 
for wham the prosecution is 
seeking 30 years’ imprisonment 
as tfae ringleader of tfae plot: 

Five months before the coop 
attempt Sr Mugica met Gen 
Armada when the latter was 
military governor of Lerfda. 
Sr Mugica denied any discussion 
of a coup and said the visit 
was a courtesy, backing up Gen. 
Armada’s claim to have played 
no part in the coup attempt 

One more witness wan railed 
after Sr Mugica — a sergeant 
However, he failed to tom -up, 
his name having already been 
called on Monday. There was 


no explanation tortus absence 
and the presiding military judge 
ordered an investigation. 

This small incident high- 
lighted once again the apparent 
lack of control with the 17-znan 
tribunal has exercised over the 
34 sessions. Yesterday morning, 
six of toe accused were absent 
again -without explanation. In 
the past -two weeks it has 
become a growing habit for 
various members of the accused 
to absent themselves. There 
seems no enforcement on atten- 
dance. 

The adjournment wfil allow 
tbe prosecution to prepare its 
summing up which' will almost 
certainly consume toe whole of 
next week’s sessions. The 
defence- represen ting each of 
the 33 accused will then present 
their case, to be followed by the 


co-defenders of the accused (a 
largely political presence, of 
Right-wing army officers). After 
tods there will be final declara- 
tions before the sentence. 

The presiding judge yesrer - 
day rejected pleas for facN®; 
face questioning ' .in ; ' coon 
between people' giving contra- 
dictory evidence. .This feaves m 
the air the flat 
Armada of .ahy part in w pwj 

or of meetings he was. 
to have had directly ra.throgS 11 
intermediaries with the oper 

key figures, Gen Jaime Milaos 

del . -Bosch- and ca Aatoao 
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Financial Times Wednesday April 21 19S2 


EUROPEAN NEWS 


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June poll likely Schmidt makes strong plea to party not to desert him 


as Italian 
coalition totters 


BY JONATHAN CARR IN MUNICH 


BY JAMBS BUXTON IN ROME 

THE GOVERNMENT of Sis 
Giovanni Spadolini yesterday 
appeared virtually certain to 
fall in the next few days with a 
general election at the «nd of 
June. 

Almost the onlly thing that 
could halt ' the accelerating 
movement towards the fall of 
Italy’s 41st Government since 
the war would be the resigna- 
tion of Sig Nino Andreotta. the 
Treasury Minister, -whose speech 
last weekend sparked off the 
latest crisis. 

Sig Andreotta, a Christian 
Democrat, told a party meeting 
that the Socialiss. who are 
partners in the coalition, might 
lead Italy to “ national 
socialism ” if they took votes 
away from the Christian Demo- 
crats. 

The remarks brought to the 
boil tensions within the five- 
party coalition which have been 
building up -for several weeks. 
They were- seized upon angrily 
by the Socialists who called for 
the minister's immediate ’ 
resignation. Sig Andreotta has 
refused, though he has said that • 
be expressed himself badly in 
his speech and meant “ socialist 
nationalism.” 


Only three second-ranking 
Socialist ministers yesterday 
attended a cabinet meeting, 
which had been postponed for 
a dgv be cause of the Socialists' 
refusal to attend it all on 
Monday. The ministers claimed 
that their presence was “ tech- 
nical " rather than “political/* 

When Sig Andreatta later, 
spoke to a committee of the 
Senate all the Socialist Senators 
walked out. The Socialist Party 
is due to decide its formal posi- 
tion on its future participation 
in the Government tody a. 

The situation is complicated 
' by the fact that th ^constitution 

requires Parliament to pass he 
19S2 budget and Finance Bill 
by the ‘end of April. Yesterday, 
the Bill ended its re-examina- 
tion iii the Senate but must go 
back to the Chamber of Depu- 
ties for further scrutiny. 

The Socialists and ' ‘ Social 
Democrats are privately keen 
for an election in the belief 
1 that their support will rise. The 
Christian Democrats are 
opposed but may feel that an 
election would provide a way 
of patching up internal divi- 
sions in the party. 


Rome cracks down on 
gang warfare in Naples 


BY RUPERT CORNWELL IN ROME 


THE • Italian Government has 
begun a counter-offensive to the 
gang warfare which is ravaging 
Naples and its hinterland. The 
move follows the transfer Df the 
country’s most notorious under-, 
world leader to a remote island 
prison off north-west Sardinia. 

This year alone almost 110 
people have been killed as 
factions of the Camorra, a 
Neapolitan equivalent df the 
Mafia, battle for control of the 
lucrative arms and drugs traffic 
through the city, and of the 
Ll,500bn (£666m) earmarked 
for reconstruction after the 
November 1980 earthquake. 

The last of them, Sig Alfonso 
Rosanova, was shot dead this 
week in his hospital bed at 
Salerno, south of Naples, by a 
group of 10 armed men who 
overpowered his police guard. 
Sig Rosanova was known as a 
financier of the most powerful 
Camorra groups led' by ■ Sig 
Raffaele Cutolo. . 

The record this year, how-, 
ever, is of no less than eight 
deaths in' a day. The butchery 
is such that not just criminal 
rivals, but their families, have 
been wiped out by men out to 
terrorise their enemies into sub- 
mission. 

So far. the Government has 
seemed powerless to stem the - 
bloodshed. -Manpower has been 
unavailable, and the central 
state has promised only the 
extension or existing anti-Mafia 
legislation to Naples, and . 


detailed checks on the tax 
returns of 3,000 leading gang, 
land figures.. - 

This week, however, public, 
complaints . by President Sandro 
Pertini • led the Government to 
shift Sig Cutolo, whose claims 
to a modest education' have 
earned him the' title of O’ Pro- 
fessore, to the top security 
prison Of Asinara, a Sar dini an 
equivalent of Alcatraz. 

He had been jailed pre- 
viously, apparently in. lax con- 
ditions, at Ascoli picenq, a small 
town l3o miles north-east of 
Rome. Visited at all hours by 
colleagues, secret service rep- 
resentatives. and. even Naples 
politicians. . Sig. Cutolo con- 
tinned to dispense with im- 
punity favours and death sen- 
tences alike. . 

Even so. his- grip on the major-, 
rackets in Naples has seemed to 
be weakening recently. The 
death toll 4 has i been, heaviest 
among his own followers, and : 
the - transfer to Sardinia could 
curb his influence. 

But,,, assuming that his 
enemies do not catch up with- 
him first, Sig Cutolo may have 
time' to : develop his poetic 
talents. Last year a small Naples 
house published a volume of his 
work, entitled Poetry and 
Thoughts, including one especi- 
ally tasteless piece of doggerel 
dedicated to the orphaned child 
of parents whose murder he had 
ordered. _ 


Norway pay pattern set 


BY FAY GJESTBt IN OSLO 

THE ELEVENTH-HOUR agree- 
. ment between Norway’s 
engineering employers and the 
powerful iron and metal 
workers' union could set the 
pattern for wage settlements 
in other sectors of industry. 

For the first time in many 
years _lhe‘ Government has 
taken no part in the bargain- 
ing. It stated in advance that 
it would not intervene to stop 
strikes by referring disputes to 
the state wages board — as the 
previous Labour Government 
often did. 


But the country is still 
threatened by two potentiaJly- 
serious transport strikes. Late 
yesterday.it remained uncertain 
whether unions representing 
300 aircraft mechanics and 
some 17,000 bus and lorry 
drivers would settle their 
differences with' employers in 
time to avoid air and road 
chaos. 

Deadline- for the road trans- 1 
port workers was 8.30 pm . 
yesterday and for the aircraft I 
mechanics is midnight today, j 


Europe’s union chiefs set 
out plan to cut jobless 

BY JOHN LLOYD, LABOUR EDITOR, IN THE HAGUE 


A* 


EUROPE’S union leaders 
yesterday set out their plan, for 
cutting Western Europe’s I3ra 
jobless total through a mixture 
of co-ordinated reflation and 
reduction in working time. 

These demands to be adopted 
this week at the fourth congress 
of the European Trades Union 
Congress (ETUC) at the Hague, 
will- be pressed at European 
Commission level "in coming 
months. and elements— 
_ especially - the demand for 
reduced working time— will, be 
reflected in national bargaining. 

, An-additional ‘demand to the 
. Resolution on Economic 
■Recovery was accepted. This 

r ails' on European, governments 
to devote 1 per cent of national 
-income to further public invest- 
ment. 

ETUC calculations use the 
OECD interlink models so that, 
if the reflation was a concerted 
one among Western European 
.states, the gross domestic 
product of most of them is 
envisaged as increasing krone 
year by about 2 per cent. 

The exercise is similar to- 
and takes its inspiration from, 
a project by the British TUG. 
in which a reflaiionary plan was 
run through the UK Treasury 
economic model. 

Mr David Lea, assistant 
general secretary of the TUC 
and chairman of" the ETUC's 
economic committee, told dele- 


gates it wafc incorrect to'say that 
extra output, would merely 
create extra inflation. 

The rate of return on invest- 
ment projects had to be seen In 
the context of the social oppor- \ 
lunity costs of not proceeding 
with them, Mr tea said. Trade i 
unions, together -with disadvan- , 
taged and minority groups, were s 
the “social majority” which had | 
to. make Its voice heard: ' 

M Edmond . -Mire, general 
secretary' of the- Confederation { 
Francais ‘ Democratique du | 
Travail, told the congress, that : 
“the social advance which j 
could be made in France ismnly j 
solid and lasting if similar , 
advances are made in other j 
European countries, under the i 
pressure ; of .Workers and I 
unions/'; . I 

The resolution on • Economic j 
Recovery demands; =•'. 

• A more egaHtariaH cMstribn- I 
rion of income;; ’ 

• Concerted public investment 

by- .Western- .European com- 
panies: : • "' -• .... , 

• A co-ordinated reduction of 

interest rates; - . 

6 An increase fn training and a 
strategy for reducing youth 
unemployment; 

• A reduction of the, working 
week to 3S.hours; ■' 

• Improvements working con- 
ditions: ' , 

• Increase in aid. to the Third 
World. 


THE WEST GERMAN Chancel- 
lor, Herr Helmut Schmidt, has 
made a strong personal appeal 
to his Social Democrat Party 
fSPD) not to desert him, nor 
his increasingly strained coali- 
tion government in Bonn. 

Addressing the party congress 
in Munich yesterday, Herr 
Schmidt stressed that this year 
would be one of fateful deci- 
sions at home and abroad 
against the background of a con- 
tinuing world economic crisis. 

“I ask you for your help." 
the Chancellor said to the 400 
delegates, adding, in a departure 
from his prepared text, “ some- 
times one feels pretty alone in 
high state office." 

Herr Schmidt was speaking 
after months of bickering, not 
only within the government 
coalition between the SPD and 
the liberal Free Democrat 

Share in 
Canada’s 
arctic gas 
sought 

By Kevin Done in Frankfurt 

WEST GERMAN and Canadian 
energy groups are to examine 
ways of exploiting natural 
gas reserves in the Canadian 
Arctic islands, with a view 
to shipping up to 5bn cubic 
metres a year of liquified - 
natural gas (LNG) to the 
Federal Republic. 

Ruhrgas, the dominant West 
German gas importer, and' 
Deutsche BP, the West Ger- 
man subsidiary of British 
Petroleum, are to mount a 
joint feasibility study with 
Transcan ada Pipelines ' and 
Petro-Canada into' develop- 
ing gas reserves discovered 
on the King Christian and 
Ellef Ringnes islands. 

The first phase of the study is 
likely to be completed by the 
end of 1983, but the earliest 
that gas could be shipped to 
Europe would be the begin- 
ning of the 1990s. 

The main attraction of the 
scheme for West German gas 
companies would be the 
opening up of a new source 
of gas supplies to help the 
industry diversify its gas 
purchasing away from its 
present three • foreign sup- 
pliers — the Soviet Union, the 
Netherlands and Norway. 

'Such a deal would offer Canada 
. access- to one of the main gas. 
consuming areas of the world. 

The Federal Republic last , year 
consumed 54.5bn cubic metres’ 
of natural gas of which 32 
per cent came from domestic 
production, 20 per cent from 
the Soviet Union, 16 per cent 
from Norway, and 32 per cent 
from the Netherlands. 

The scheme envisaged for ex- 
ploiting the arytic gas would 
involve local liquefaction and 
then transport by ice-breaking 
LNG tankers on the 5,200- 
mile route to a deep-water 
terminal at Wilhetmshaven on 
the North Sea coast of West 
Germany., 

Transcanada Pipelines, the 
biggest Canadian gas distri- 
bution company, will lead the 
project study group. It bolds 
a one-third interest, with .the 
remainder . in the hands of 
.Petro-Canada, the State-owned 
Canadian energy group (one- 
third) and Ruhrgas/Deutsche 
BP. (one-third). 

According to official Canadian 
figures, the .Arctic Islands 
have proven and probable 
natural gas reserves of around 
400bn cubic metres, but the 
region is still relatively unex- 
plored. By comparison, the 
UK had natural gas reserves 
estimated at 750-2.150bn cubic 
metres at the end of 1980. 

A separate Scheme, the Arctic 
Pilot Project, is already being 
prepared by Canadian and 
U.S. companies to exploit 
Canadian Arctic gas from the 
region of Melville Island, 
about 300 miles to the south- 
west of King Christian Island- 
This project . is being led by 
Petro-Canada and Tepneco 
for the U.S. purchasing con- 
sortium. . Hearings are being 
held in Ottawa into the grant- 
ing of export licences for the 
shipment of gas — first in 
liquefied form, -then by pipe-, 
line from the Canadian east 
coasj to the U.S. 

First deliveries — at a rate of 
2-2bn cu metres a year— are 
not planned before 1987. 
Ruhrgas stressed yesterday that 
the Arctic gas project could 
not be. seen as an alternative 
to its recent controversial 
deal with the Soviet union 
for the delivery of I0.5bn 
cu metres a year, beginning 
in late 1984. ' 

The company ■« confident that 
rising German gas demand,, 
coupled with the. country's 
policy of seeking to reduce 
crude oil imports, will create 
a market large, enough to 
absorb growing quantities of 
Russian gas in the second 
half of the 1980s as well as 
extra supplies of 2.2bn cu 
metres a year . due from 
Norway from 1985-86. 

West Germany at present 
reciavs all foreign natural 
gas -supplies by- pipeline. 
Earlier agreements reached 
with- Algeria for the supply 
of LNG were cancelled by the 
Algerians. 

A further project for the 
delivery of LNG from Nigeria 
appears to have been put on 
' ice. following the withdrawal 
of several of the oil com- 
panies involved in the 
scheme. 


Party fFDP). but between fac- 
tions within the SPD itself. The 
result has been growing specu- 
lation about whether the 
alliance, which has been in office 
for more than 12 years, can 
survive much longer. 

Parts of the speech were, for 
Herr Schmidt, unusually per- 
sonal in tone— evidently in an 
effort to change the views of 
some in the party who see him 
as an unsympathetic “ crisis 
manager ” with little long-term 
perspective. Herr Schmidt 
admitted that he had made mis- 
takes. that he would be unable 
to avoid making more — and that 
he had been hurt by some of 
the party criticism levelled at 
him— for example, that his 
moral stance had been 
“crippled" by the pressures of 
practical policy-making. 

But on the key controversial 


issues which the congress is due 
to dehate this week. Herr 
Schmidt also made dear, that 
he had not budged at all— and 
did not intend to dcr.so; 

As expected, he reaffirmed 
his complete commitment to the 
Nato " arm and negotiate ” 
decision on intermediatq-n^fgc 
nuclear missiles,, a. stand which 
at least a ^tfbng minority of 
delegates would . like ■ to see 
rejected. While not specifically 
repeating , his threat- to resign 
if the party came out against 
the Nato position. Herr Schmidt 
said: “ The. congress is aware 
of the absolutely top-level 
importance . I * attach to this 
matter.-" * 

The Chancellor also urged 
the congress to reject a motion 
to be placed before it urging 
that there be a two-year ban 
on construction of new nuclear 


power stations. He also under- 
lined that, however hard it was 
for Social Democrats to see 
: their principles watered down 
- in practice, the coalition with 
the FDP . meant that com- 
promises had to be found. Any- 
one not ready to compromise 

was not fit for democracy, 

Besides using the carrot of a 
personal appeal to gain con- 
gress support. Herr Schmidt 
also took up a stick — by paint- 
ing a lurid picture of what he 
felt would happen if the opposi- 
tion parties came to power. 

West Germany would become 
the pawn of other powers, he 
said, its society would become 
the object of “neo-conservative'* 
experiments, there would be 
both more “drop outs” from 
politics, and a dramatic in- 
crease in total opposition to the 
state. 


Double act finds audience hard 
to rouse at SPD congress 


BY JONATHAN CARR 

HERR HELMUT SCHMIDT and 
Herr Willy Brandt had at least 
one thing in common when they 
spoke, this week to tfie party 
congress. Both found it hard 
to rouse much enthusiasm 
among the 400 delegates inside 
the largely-empty and acousti- 
cal] y-treacherous “ Olympia- 

halte," which can seat more than 
10,000. That said, the speeches 
were most notable for their 
differences. 

To be sure. Herr 'Brandt, the 
party chairman, delivered his 
remarks in strong tone and with 
much banging of the speaker’s 
dais. But. through the way in 
which he formulated his com- 
ments and through what he 
failed to say. he left some doubt 
about his real position. 

Like Herr Schmidt, he urged 
the . congress to support the 
Nato “ arm and negotiate " 


decision on nuclear missiles. 
But he argued that the Nato 
stand " is' a- fact. It belongs to 
the mechanism which puts pres- 
sure oh both sides, (the -U.S. 
and Moscow; to agree." He 
ad so said the decision did not 
imply that new Western mis- 
siles would' automatically he 
deployed in Europe, if the 
super-power . talks stalled. 

The Chancellor, on the' other 
hand, put;, the onus firmly on. 
the Soviet Union. The nego- 
tiations could only be success- 
ful if Moscow knew for certain 
that failure would mean the 
missiles deployment 
• Both speakers' mentioned 
Afghanistan, but in quite Af- 
ferent ways: ; ‘ HeTr " Schmidt 
likened the Soviet invasion, to' 
the action : of 'the “ aggressive 
Hitler dictatorship," while the 
SPD chairman -simply remarked 




that El Salvador should not 
become another Afghamslnn. 

Herr Brandt said the Social 
Democrats wanted close and 
friendly relations with the U.S.. 
but it was Herr Schmidt who 
gave concrete examples of 
things for which the West 
Germans were truly grateful to 
Washington, including the 
defence of freedom in Berlin 
and Marshall aid. Above all. 
Herr Schmidt stressed that " our 
position is irrevocably anchored 
in the West.” and the ‘whole 
thread of his foreign policy 
arguments made clear why he 
Thought so. 

This slance emerged much 
less clearly from Herr Brandt’s 
remarks and helps explain why 
successive U.S. administrations, 
as well as the Mitterrand Gov- 
ernment in France, have had 
doubts about the SPD’s whole- 



Schmidt and Brandt ... differences of tone 


hearted dedication to the 
Western alliance. . 

One seasoned academic 
observer commented after the 
two speeches that il had been 
the old business of ” division of 
labour" — Herr Schmidt provid- 
ing the sharp policy contours for 
the country at large and Herr 


Brandt acting as a " figure of 
integration ’* for the Left. 

The problem is that the SPD 
now has the support of only 
one-third of the electorate, its 
lowest level of popularity for 
more than a decade, indicating 
that the nld strategy is not 
working as il used to. 


A 


The face ofWelsh industry has changed 
dramatically in recent years. • 

So, indeed, has the face of our workforce. 

In feet, most of what we produce these 
days comes from above ground. Rather than 
below it 

Which has to be a change for the betten 
Yes, there have been redundancies. 

But there have also been thousands of 
newjobs createcLNotablyas a result of rapid new 
developments in engineering, and the arrival of 
the high technology industries. 

The feet is, these two alone now account 
for around 40% of people in Wales employed in 

manufac turing. 

Were host to a host of household names. 

Like Sony.' Whose chairman, Mr.Akio 
Morita, has recently gone on record as saying 
, the productivity and labour relations at his 
k Bridgend plant are every bit.as good as back 
Ig. home. 

mk Small wonder then that Sony’s nearest 
lltt rival lives practically next doon 

} 4 ; rA You see, the GEC-Hitachi people produce 
all their colourTVs for the British market 
6111m, in Wales. 


THE FACTS ABOUT OUR WORKFORCE 

IN BLACK AND WHITE. 






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Of course, we’re delighted by the arrival 
of so many new feces. 

And, whatever the size of your business!, 
. we’d be just as pleased to see yours. 

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Mid Glamorgan, CE375UT. 



Financial Times Wednesday April 21 1^82 


OVERSEAS NEWS 


Eanes holds 
talks with 
l^ujoma 


Lee tightens control on Singapore newspapers 


BY KATHRYN DAVIS IN SINGAPORE 


in Luanda 


EyOtana Smith In Lisbon 


. PRESIDENT Antonio Ramalbo 
' Eanes -of Portugal has held talks 
In Luanda with Mr Sam Nujoma, 
leader/ of ' the South -West 
Africa People’s Organisation, in 
amotfeWhieh has put Portugal's 
'pole' in Southern a ww on an 
Entirely new footing. 

Halving specially asked to see 
President Eanes while die 
Pomgaese head of state paid a 
fodx-day state visit to Angola, 
Mr' Nujoma told him he would 
be "happy to see Portuguese 
■ troops- playing a key part in a 
peacekeeping in Namibia, once 
the transit! cn toward indepen- 
dence began. ' 

" . President Eanes' public con- 
demnation in Luanda of Apar- 
theid and of the undeclared 
war waged by South Africa in 
Souther nAngola was patently 
■what his hosts wanted to hear. 

This and efforts to drum up 
cooperation by Portuguese con- 
cerns for Angola’s glaring 
material needs' ensured the’ 
success of his visit. 


THE SINGAPORE- Government 
is to tighten ats Already strict 
control over the local media 
next month by forcing changes 
in the ownership of the 
republic’s leading newspapers. 

An anourreement from Prime 
Minister Lee Kuan Yew's offices 
yesterday said that a wfcoHy- 
owned subsidiary of the Straits - 
Times Press (1975) Limited; 
which publishes all four of the 
republic's English-language 
newspapers, will relinquish two 
of its titles to a rival concern, 
Singapore Monitor Limited, 
from May L 

: In an arrangement which has 
not been fully explained, The 
Monitor will "borrow” the 
titles of an afternoon paper and 
a Sunday paper from the Straits 
Times for a nominal sum for an ' 
initial period of one year. The 
Straits Times is believed to be 
particularly unhaippy about 
parting with the Sunday paper 
but has been overruled. • 


At the same time, the 
country’s two major Chinese 
language dailies are apparently 
being threatened with amalga- 
mation, following -the creation 
of a joint holding company 
through a complicated' share 
swap by the parent groups of 
both newspapers. 

Trading in the shares of the 
Straits Times and ifie two' 
Chinese newspapers jwas 
suspended on the Singapore 
stock exchange last week while 
discussions took place between, 
senior executives and Mr Lee. 

A' statement from the Prime' 
Minister’s office said .that: the 
declining readership, of Singa- 
pore's Chinese newspapers 
caused by the popularity of 
English-language education in 
Singapore, had caused a need to 
■restructure the ownership of 
both groups of newspapers. 

Many local journalists 
and newspaper executives fear 
the restructuring is another 


response to the emergence of a 
small but vocal - opposition to 
. Mr Lee's ruling People’s Action 
Party, which suffered an un- 
expected defeat in a by-election 
last October. 

The victory of Mr J. B. Jeya- 
retnam, the Workers Party 
candidate, in the Anson consti- 
tuency has been partially 
blamed by Mimsters on a report 
carried by. the Straits Times 
just before, the election, saying 
that bus faxes were going up. 
The report was. subsequently 
denied by the Government, 
which alleged voters had been 
misled. 

In’ February, a former senior 
intelligence officer and senior 
civil servant, Mr S. R, Nathan, 
was appointed as executive 
chairman of the Straits Times, a 
move interpreted by many 
observers as direct government 
Intervention in the running of 
what was in any case a pro- 
Govemment newspaper. 


This view was shared by the 
Australian newspaper owner Sir 
Keith MacFherson, whose 
. Australian newspaper chain, the 
Herald and Weekly Times, held 
a 3 per cent .stake in the 
Straits Times subsidiary. New 
Nation. Publishing, . the maxi- 
mum allowed to overseas 
interests. 

In a letter to Prime Minister 
Lee, announcing his company's 
decision to sell its holding last 
. week, Sir Keith said; “The 
: Herald and Weekly Times Ltd 
is a staunch supporter of the 
principles of freedom of the 
Press . . quite obviously there- 
fore, it is not possible for us to 
continue in association with a 
newspaper which is now dearly 
government dominated." 

Mr Lee . has had traditionally 
abrasive relations with both the 
foreign and local Press and the 
PAP does not deny that it 
intends to keep a firm grip on 
the content of the republic's 



Lee Kuan Yew 


newspapers. Mr S. DhanabaJas. 
the Foreign Minister, told 
Parliament recently: ** We make 
our own rules' as to how political 
parties should conduct them- 


selves and how public issues 
should he discussed." 

Specifically, however, the Gov- 
ernment also needs to accommo- 
date the backers of the ycMo-be- 
published Singapore Monitor, 
including the GovenuneoKon- 
trolied Development Bank of 
Singapore (DBS) which has 
already sunk S$44m (film) into 
the venture. 

The Government first backed 
the Monitor two years ago as a 
potential check on the influence 
of the Straits Times, the 
republic's only morning English 
language paper, which has a 
circulation of 230,000. 

But Mr Lee is said to have 
become concerned that rile new 
paper could not function pro- 
fessionally without the assist- 
ance of senior foreign, mostly 
British journalists who would 
not necessarily share PAFs_ 
media perceptions. 


Nigerian 

import 

curbs 


expected 


By Michael Holman 


HIGH CURRENT ACCOUNT DEFICIT FORECAST 


India will need more external financing, says World Bank 


BY It K. SHARMA M NEW DELHI 


Portugal has always discreetly 
hinted that it would be pleased 
-to be -an honest broker in 
southern Africa, if such a con- 
tribution were needed. 

The- crowsd who welcomed 
President Eanes wherever he 
went in Angola were no great 
surprise. The Angolans had 
hinted tie could expect a par- 
ticularly friendly welcome, as 
the first Western chief of state 
to visit the country since its 
19?? independence. 

But the speed at which letters 
of intent were signed and the 
alacrity with which Angola 
agreed to clear up outstanding 
debts, like one of SISm (£6.6m) 
to Portugal's National Naviga- 
tion Company, startled many 
observers. 

Among the steps agreed are 
assistance by a Portuguese metal 
'company in production of gas 
cylinders in Angola, operation ■ 
of 13 Angolan hotels by a 
Portuguese company and help 
by Portuguese technicians in 
restoring production of coffee, 
sisal, sugar and cotton. 

Angola desperately needs 
volunteers in every area of 
activity. Portugal will make 
special efforts to persuade young 
people with the necessary quali- 
fications to go there. 

Meanwhile, the Angolans indi- 
cated they would return assets 
to Portuguese who would come 
bade, having fled the -country 
in the 1975 civil war. 


THE WORLD BANK has 
warned that India will neea 
considerably more external 
help to finance its current 
account deficit, in addition to 
generating its own foreign 
[ exchange resources. : ' 

In "a ' confidential ? report on 
the Indian economy which has 
been . sent to Western donor 
countries and Japan in the 
“Aid-to-India" consortium, the 
World Bank said that India’s 
current account deficits are 
anticipated to be more than 2 
per cent of Gross Domestic Pro- 
duct (GDP) for the first half 
of the 1980s. 

Growth in imports most be 


accompanied by major improve- 
ments in infrastructural per- 
formance. modernisation of 
industry and accelerated export 
growth as a "top priority,” the 
report says. 

The 1 Bank projects- exports -of 
$10bh in 1982-83, S11.6bn- in 
1983-84 and $13.5bn in 1984-85, 
a growth rate which roughly 
conforms to the Government’s 
calculations. 

Imports are projected at 
$17.Gbn in 1932-83, $20bn in 
1983-84 and $21_75bn in 1984-85. 
The current account deficit 
would be highest In 1983-84, 
when it is estimated at $5.l9bn, 
more than double that esti- 


mated in 1981-82. - 

The. flow of concessional aid 
is expected to reach about 
flBbn annually in . the next 
three years and this must mean 
a rise in medium- and long-term 
borrowing from other sources. 
: including ' the International 
Monetary Fund (IMF) and the 
world money markets. 

The report says that the role 
of the external sector In the 
Indian economy is JM certainly 
more critical now” than ever 
before. It' points out that 
imports. will be vital for pro- 
moting efficient use of resources 
since they will make industry 
competitive. The “ significant 


challenge ” - of modernisation 
could be met only through 
greater reliance on imports of 
key equipment 

'Exports also have an import 
tant part to play in encouraging 
a more efficient use of resources 
and in improving the allocation 
of “scarce resources for 
development" the report says, 
pointing out that private foreign 
investment and external com- 
mercial borrowings will be 
important for India in the 
1980s. - Government policy 
should encourage foreign 
investment, it says. 

The Indianisation of foreign 
companies under the Foreign 


Exchange Regulation Act of 
1974 is nearly completed, the 
bank says, and the Act need not 
be an obstacle to foreign invest- 
ment The number of foreign 
collaboration agreements since 
1974 has increased. 

Nearly two-thirds of the col- 
laboration agreements in the 
1970s covered five major indus- 
tries— industrial machinery, 

electrical equipment chemicals, 
machine tools and metallurgical 
industries. 

The report broadly endorses 
the policy decisions of the 
Indian -Government in the past 
year but has noted some major 
weaknesses In the economy. 


Apart from the balance of pay- 
ments position, these include 
the' relatively slow improve- 
ment in power generation, 
transport and coal, imbalances 
in agricultural growth both in 
regions and crops, low produc- 
tivity of many sectors of indus- 
try and the slow progress , of 
irrigation projects. 

The Bank approves of the 
increased public sector outlays 
in the country’s sixth five-year 
plan for the period 1980-85 but 
says that the changes made in 
the last two years are insuf- 
ficient to meet the reai invest- . 
ment needs for the period as a I 
whole. ! 


Delhi to build two heavy water plants for N-power stations 


OFFICIALS AND*, business- 
men In Lagos anticipate the 
introduction of wadMasW 
fmjwrt curbs fttawinrtiie 
approval earlier this wtek af 
legislation introduced fa* 
President Sheba Sbagwri at * 
special session. <4 Nfeeriafe 
national assembly. 

FresidentShagaritoWthe 

assembly on Monday that ms- 
pension of letters of credit 
and foreign exchange applica- 
tions, announced on .March 23, 
would be lifted “urgently." 
He is now expected to use new 
powers granted to hint under 
the Economic - Stabilisation 

(Temporary Prbvtrioa) Sill to 

.Introduce new import eurhs. 

President Shag&rl add that 
the March 23 measures would 
be lifted “as the country can- 
not afford to keep onr inter- 
national transactions- ■ in 
suspense any longer.?, ; - 

Businessmen In Lagos 
believe that new- measures 
could include an Import 
deposit schemes, and raised 
customs duties. .. 

In bis speech on the hm, 
the President released: the 
results or a central hank 
exercise which illustrates: the 
country’s' serious balance of 
payments difficulties fn the 
wake of falling oil production. 

As of March 23 outstanding 
commitments for Imports ®f 
spare parts, raw materials and 
food came to A9bn Naira 
(£4Jtim), of which 2.6bn 
Naira, win fail due over the 
next three months. 

- Last month's Opec meeting 
'in Vienna established a quota 
of L3ra barrels a day (b/d) 
for Nigeria, but the forecast 
April production figure is 
around 950,600 b/d. Even if 
Nigeria reached its quota, oil 
receipts would be an estt 
mated 5700m belbw normal 
monthly import levels. 


BY ALAIN CASS, ASIA EDITOR 


INDIA IS to build two heavy 
water plants to supply cooling 
liquid for its nuclear power 
stations which are currently 
working substantially below 
full capacity. 

The plants will be built 
entirely without foreign aid or 
technology and it is hoped 
their completion will relieve 
the chronic instability in 
India's electricity grid. 

India is reliably understood 
to • have turned down offers 
from the Soviet Union to 
supply heavy water to make up 


the shortfall. 

This is because the Russians 
insisted that any plants using 
their heavy water would have 
to be opened to international 
inspection under the auspices 
of the Vienna-based - Inter- 
national Atomic Energy Agency 

India Is not a signatory of 
the Non-Proliferation Treaty 
(NPT) which it considers 
biased against developing 
nations. Proposals for building 
the first entirely Indian heavy 
water plant to add to the exist- 
ing two French-designed 


stations have been put before 
the Cabinet in New Delhi. 

The plant is expected to be 
sited on the Godavari River in 
Andhra. Pradesh Satte and to 
have a production of between 
200 Mw and 400 Mw a year. 
A second plant is in the plan- 
ning stage. 

Of India’s four nuclear power 
plants either in operation or 
under construction, three are 
pressurised - heavy water 
reactors (PHWRs) • using 
natural, as opposed to enriched 
uranium. One ' unit at A the 


Madras power station is lying 
idle because of a shortage, of 
heavy water. 

The critical shortage of heavy 
water has two reasons. First.' 
the existing French-designed 
heavy water plants are 
affected by frequent power 
failures. The Andhra Pradesh 
plant will have its own 
generator. 

Second, the heavy water 
plant at Baroda was out of 
action for nearly .18 months 
after an explosion in 1980 which 
raptured a critical pipe. Per- 


sistent reports that this was the 
result of sabotage have been 
denied by the Government 
The electricity shortage -has 


at below 80 per cent capacity 
since the U.S. ended its supply 
contract 

Mrs Indira Gandhi, the Prime 


Prem to visit Europe 


also hit existing nuclear power Minister, is likely to press for'a 
plants which sometimes stop resumption of supplies when 


functioning two or three times 
daily when the power frequency 
drops below certain levels. This 
in turn stops the outflow of 
power from the nuclear 
stations. 

India’s only nuclear power 


she visits Washington later this 
year. 

According to officials, the 
Tara pur plant has sufficient fuel 
for what is described as its life 
time, but they refuse to say how 
long that may be, or what hap- 


statfon which functions on en- pens after that, should the -U.S. 


riched uranium at Tarapur in not resume supplies of enriched 


Maharashtra has befetr running uranium. 


Thai Prime Minister Prem 
Tinsuianonda . leaves for 
Europe tomorrow: on a tour 
that win include talks with 
British - Prime - Minister 
Margaret Thatcher and 
French President Francois 
Mitterrand and EEC officials 
ia Brussels, Barter reports 
from Bangkok. His delega- 
tion will include -the Thai 
Ministers of foreign affairs, 
-commerce, agriculture and 
industry and ~ 20 . leading 
businessmen. '■ 


THE FALKLANDS CRISIS 


Marines tell 
of battle 


Falklands adventure 


on the beach 


unites a country in 



Pessimism 


By Bridget Bloom, Defence 
Correspondent 


search of its identity 




grows m 
Argentina 


Japan acts 
unofficially 
on credits 


THE 22 British Royal marines 
who found themselves on the 
island of South Georgia facing 
an invasion force of about 100 
Argentina Marines decided to 
fight rather than capitulate 
because they wanted to make 
sure the Argentina capture of 
the island becomes “a separate 
political issue" from the Falk- 
land Islands' takeover. 


BY JIMMY -BURNS IN BUENOS AMES 




Lt Keith Mills, commanding 
the Marine detachment normally 
based on HMS Endurance, told 
a Defence Ministry Press brief- 
ing yesterday how his men had 
fought for two hours on April 3, 
the day after Argentina troops 
had taken the Falklands, to 
prove their political point 

The Marines had dug them- 
selves into trenches defended 
by booby traps and explosives 
300 yds from the main beach 
landing by the Argentines. The 
group had, he believed, killed 
10-15 Argentina Marines- and 
wounded at least 20. 

The Marines caused enough 
damage with anti-tank rockets 
and machine gun fire to an 
Argentina corvette to cause it 
to limp the 1J200 miles back to 
the mainland. They also im- 
mobilised one helicopter and 
damaged a second. 

“We used every weapon we 
had,” Lt Mills said. Only one 
British Marine .was injured. The 
22 men spent 11 days on the sea 
journey' to Argentina and four 
' days oh the mainland before 
flying to Britain on Monday: 
They were “treated very well— 1 
I was very surprised how well,” 
Lt Mills said. 


• Lt Stills (below right) is 

welcomed back to Britain by 
Lt Gen Sir Stnexrt Pringle 


OUTSIDE army headquarters in 
Buenos Aires the symbols of 
warfare — replica tanks, heavy 
artillery and live soldiers look- 
ing like American Gr&— look 
menacing. But inside the huge 
white building the guards are 
dressed in top hats and riding 
breeches and hold muskets in 
their hands. In a country that 
has never fought a conventional 
international war, you need to 
delve into history k to catch a 
glimpse oE the military psyche. 

In 1807, a British attempt to 
recover a cjty which commer- 
cial interests had led it to be- 
lieve was half Britain's was tem- 
porarily shattered when troops 
led by General John Whitlock 
were ignobly routed in the 
streets of Bueno s Aires by a 
poorly-armed and outnumbered 
local militia. Much of the 
damage was done by fanatical 
housewives who poured boiling 
water from their balconies over 
the heads of the invaders. ; 

Any confrontation now be- 
tween the two countries is 
likely to be a great deal more 
complex. But some of the atti- 
tudes that underlie current 
Argentine military thinking and 
which could motivate Buenos 
Aires to move beyond the brink 
are strikingly, similar. . . 

The ghost of Whitlock has 
been invoked and Britain has 
been cast in the role of colonial 
aggressor. Argentine military 
preparations have beeaj ratified 
as the legitimate defence 
against an external ' threat to 
national territory. 

Public opinion has warmed to 
the fact that the occupation of 


the Falkland Islands was car- 
ried oat with an absence of 
violence from the Argentine 
■ side. ‘ Indeed, while British 
Marines shot to kill, Argentine 
soldiers stuck to their specific 
instructions to shoot into the 
air. 

The colonial argument has 
now -been taken to the Organisa- 
tion of American States in a 
further attempt to repeat his- 
tory. In 1807 the thwarting of 
the British troops was one of 
the sparks that lit the flame 
of the Latin American War of 
Independence. 

In 1982, however, such senti- 
ments remain Utopian, given 
the huge regional differences 
that exist within Latin America, 
the diverse political and 
economic philosophies that exist 
within individual countries- and 
their interdependence on Wes- 
tern trade and influence. Within 
the Argentine armed forces it 
smacks more of diplomatic 
opportunism than any real per- 
ception of a global role, 
although some nationalist 
officers take it seriously enough. 

In its search for a national 
Identity this country of immi- 
grants remains as fanatical as 
it was over 150 years ago. To- 
day. as then, the men under 
arms are acutely aware that the 
occupation of the Falklands 
has- forged an unprecedented, 
unity in a country characterised 
by the .divisiveness of it. poli- 
tal and economic system. 

Any doubts the junta might; 
have had about popular com- 
mitment to Argentina’s claim to 
the islands have been dispelled 



By Andrew Wbitiey in 
Buenos Aires 


By Richard C Hanson in Tokyo 


ST; ■ . • - ' ,;r 

~ T' i.-.yar 

' . ' ' •' --■1 


Landing craft from HMS Hermes exercise in the Atlantic 


by two mass rallies and a daily 
ritual of public statements of 
support from a wide political 
spectrum. This ranges from 
fascist politicians and conserva- 
tive bishops, to left-wing trade ' 
unionists and human rights 
.activists. The minority in dis- 
sent has been successfully 
squashed by a barrage of media 
coverage. 

But popular support has not 
been simply - the -creation of 
propoganda. A week before the 
Falklands invasion thousands of 
Argentines; demonstrated on 
the streets of Buenos Aires 
ag ains t the Government’s 
authoritarian rule and economic 
policies in open defiance of the 
state of siege. Argentines would- 
no doubt do so again were they 
to consider that the _ military 
was taking them for a ride. 

_ The" fervour which character- 
ised the aftermath of the 
invasion has now given way to 
a more sombre mood and grow- 
ing tension. Public opinion has 
woken, up to the very real 
possibility of war. But the 
military, on the whole, remains 
convinced -that it still has most 
Argentines behind 1L 


“If Mrs Thatcher thinks she 
can scare us into submission 
she's got us wrong. And getting 
us wrong would lose her the 
wax," commented Admiral 
Fernando Mil la. one .of 
Argentina's leading, strategists. 

From an Argentine perspec- 
tive the image of the British 
task force as a gallant crusader 
coining to the . rescue of a 
besieged island population holds 
little water. “This is funda- 
mentally a prestige war," said 
one military officer suggesting 
that Mrs Thatcher was more 
concerned- about staying in 
power than about the well-being 
of the Falkland Islanders. 

There ' may be enough 
reasons lor the Argentine 
military to opt for a' confronta- 
tion with Britain, but not all 
officers agree it is Inevitable, 
let alone welcome. Exact details 
of Mr' Haig’s latest round of 
negotiations' In Buenos Aires 
are still the subject of much 
conjecture, but it is certain that 
UJ5. pressure centred on an 
issue which "Washington 
believes- is dose to the heart of 
an influential sector .of the 


Argentine military. Including 
Gen Leopoldo Galtierl 

The U.S. has tried to impress' 
on the junta, that both sides 
must pull back from a war 
which would threaten not only 
Britain’s Nato commitment 
within Europe, hut also regional 
stability In the south Atlantic. 
In Buenos Aires the U.S. raised 
the prospect of two severely 
weakened allies and the sub- 
sequent exploitation of the 
situation by the Soviet Union. 

. Military officers ' admit that 
such an ' argument has 
undoubtedly produced a 

measure of flexibility from the 
Argentine side, such as the offer 
of a transition period leading 
to further talks . about 
sovereignty, rather than 
insistence on an immediate de 
jure recognition of the claim 
by Britain. 

“ Don’t forget that we have 
lost more lives- than any other 
South American -country in the 
fight against communism. We're 
hardly going to let the Soviets 
in through the back door on 
account of the Malvinas," said 
one officer. 


ARGENTINA’S INSISTENCE on 
a final transfer of sovereignty 
over tiie Falkland Islands from 
Britain by the end of - Decem- 
ber is considered by observers 
here to be the principal 
stumbling block in the pro- 
tracted indirect negotiations 
being conducted through the 
good offices of the U.S. 

.At the end of what has been 
described in Buenos Aires as 
“the first phase of- the negotia- 
tions." there is an unofficial 
consensus that any departure 
from this position by Argentina 
could lead to the collapse of 
the present military Govern- 
ment led by Gen Leopoldo Gal- 
tieri. . . 


Mrs Margaret Thatcher's criti- 
cal first reaction to the outcome 
of the Haig mission, trans- 
mitted to London on Monday, 
has added to the new wave of 
pessimism settling over the 
country, following hopes of a 
decisive breakthrough. 

The ." pro-Govemment La 
Nacion daily yesterday quoted 
a “high Government source" as 
saying that Argentina was pre- 
pared to accept dual administra- 
tion of the islands, shared 
equally with Britain, provided 
London gave prior and" -explicit 
recognition of Argentnda’s right 
to sovereignty. 

This was -said to have been 
rejected by Mr Haig on behalf 
of Britain. 



EEC ministers urge Haig to continue peace shuttle 


BY JOHN WYLCS W BRUSSELS 


EEC FOREIGN ■ ^Ministers 
agreed yesterday on the need 
for Mr. Alexander H«g,--U.S. 
Secretory of State ton continue 
his efforts to find -a peaceful 
solution to the Falkland Islands 
crisis, despite British reserva- 
tions about aspects of his latest 
settlement proposals. 

The strong Community sup- 
port for Mr Haig's efforts came 
at the end of a SO-minute meet- 
ing in Brussels at -which Mr 
Francis Pym, the- British 
Foreign Secretary, -ftilsomely 
expressed the UK’s gratitude for 


the Ten’s political and economic" 
support The EEC agreed last 
-week -to impose an -import- ban 
on Argentine products. 

Without going into -details on 
the latest Haig proposals, ■ Mr 
Pym .made it. clear that, the 
British Government would need 
to make some counter proposals 
and that it hoped that Mr Haig 
would keep on pushing Buenos 
Aires towards a compromise. — 

Giving a cautious account of 
yesterday’s ministerial discus- 
- sions, which were held at British 
request, Mr Leo Tindemans, the 


- President of the EEC’s Council 
of Ministers, said that the .Ten 
-agreed on four conclusions: 
ffi Reaffirmation of their solidar- 
ity with the UK in the Falklands 
crisis; 


■# Confirmation of the Com- 
munity’s desire for full imple- 
mentation- of UN Security 
Council resolution 502 calling 
for the withdrawal of the 
Argentine - forces. 

:• A -declaration calling for a 
peaceful solution -to the crisis. 

• “ Strong support ” for Mr 


Haig’s continuing efforts to 
encourage a settlement 
The discussion is said to have 
been low key and to have 
avoided any talk' of the possi- 
bility of a military conflict. No 
criticism of British conduct or 
objectives was evident 
Before the meeting the British 
stressed that the UK was pre- 
pared to use force against 
Argentina if diplomatic efforts 
fail. Mr Pym made no such 
assertion to his colleagues, and 
none apparently sought to probe 
British intentions. 


According to Mr Tindemans, 
there was some discussion as 
-to.-what might need to be done 
diplomatically if Mr Haig’s 
efforts fail, hut no conclusions 
were reached. The foreign 
.ministers are to review develop- 
ments again when they meet in 
Luxembourg next Monday and 
Tuesday. 

Mr Pym, who is said to have 
made a good, impression .at his 
first EEC ministerial . session, 
emphasised his determination to' 
take part in the negotiations, 


The source is reported as say- 
ing hat the situation - was so. 
gra . * that a peaceful settlement 
only appeared possible through 
the loss of Argentine 
sovereignty over the Falklands; 
and at a high political cost 
domestically. . 

The- mass-circulation daily 
Clarin, which has been usually, 
well informed throughout the 
crisis, says the UB. Secretary 
of State agreed reluctantly to ■ 
transmit to London Argentine's 
insistence that the transition 
period would have to "expire- by 
the end of the year; but that he. 
would not incorporate Che pro* / 
posal into his plans, . 

According to Clarin, Mr Haig 
left .with a five-point plan. On 
the sensitive issue' of which flag 
would fly over the island,, it 
was agreed that there would be 
three those of Britain and 
.Argentina, over the governors' 
bouse,, and that of the. U.S. 'over 
-the house- of the" American 
representative, there to act as 
guarantor of the. agreement . . 


JAPAN has unofficially sus- 
pended new commitments for 
export credits and other com- 
mercial loans to Argentina 
as a “ temporary pheno- 
menon" apparently, aimed at 
supporting the UK position 
in the Falkland Islands dis- 
pute. 

The halt In credits could h*: 

. .. come more spedfic-of Argen- 
tina does not '"withdraw i®. 
troops from the- islands for a 
long period. For the; time' 
being, however, the Japanese 
Government is unwilling. to 
make public such a sanction 
for fear of “ discriminatiop ” . 
by Argentina against the-, 
substantial Japanese aseta 
(mostly loans) in. th^_ 
country. The suspension' 9^ 
in any case, be' interrupted ; 

- as a prudent step on ■ 

of private bankers. s, ’ 

British journalists . were- 
yesterday that the 
Government is trying. "ygP*| 
-limits, to act. in step wgfc . 
others on the three ' tow 6 " 
requests for support from-tofi 
British Government: an J® 5 .. 
embargo, suspension of.M- 
ports and a freeze on credits. .. 

Japan is not ah. aipw exporter. ;; 
and feels it Cannot,- uao^r 
treaty, obligations.. (both;<h® 
General ' Agreement ^ ott 
Tariffs and: Trade - acd * 
bilateral trade agreement 

- with Argentina) suspend b&- 
ports from Aigpnttev; The - 
. Foreign '. ’Ministry - . hebeveS- - - 
however, that by quietiy 

ing back- on loans; it,;is .doing 
as -much" on the 
ns Britain’s European a»e*.r 


Although Japan- is' xrot maktog 
. a ", "direcr - response, 

' . Foreign : Mihiatiy . afppareutiy 
hopes tha't Argentina' vrih ’ 
take . views arwre seriously.- ; 
Japan .has piftlicly- 
• Argentina • . . to vrithdia* • 
promptly from the FaUdapd 
Islands. . V 


Islands crisis 


analysed 


A 48-PAGE guide to the . Falk- 
. land Islands crisis -has. hoao . 
published -by the Royal 
.tute of International' Affarrt* . 
Entitled The Falkland Islands 
.Dispute: InteraationaLDlm®* 
"siona, the pamphlet consists w 
essays . by academics. Jaw- 
forelgn affairs specialists 
It is available from Chatham 
- House. 1 0. jSt JameS’&Sqnare; ■ 
London, SW1, price £2*75. ' 


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Financial Times Wednesday April 21 1982 

Fears grow as 
budget debate 
draws to end 

BY ANATOLE KALETSKY IN WASHINGTON 


AMERICAN NEWS 


FEARS OF a loss of direction 
in economic policy and of con- 
tinuing demoralisation for 
financial markets grew ' in 
Washington yesterday as the 
Iong-numing debate on the U.S. 
Government's 1983 budget 
entered its final session. 

White House officials and 
Congressional leaders have been 
seeking a new budget pro- 
gramme to replace the one 
proposed by President Ronald 
Reagan in February, which is 
now seen universally as a dead 
letter. 

Both Republican and Demo- 
cratic Congressional leaders 
have warned that they will 
present their own tax and spend- 
ing legislation directly to Con- 
gress unless a compromise with 
the President can be worked 
out in the negotiating session 
which began yesterday. 

The effect of such moves, 
according to Mr Howard Baker, 
Senate Republican leader would 
be a “chaotic” debate on 
economic policy, with the two 
Houses of Congress probably 
adopting opposing measures. 

A stalemate on changes of tax 
and public spending policies 
would produce a 1983 deficit of 
around $180bn (flOObn). This 
compares with a deficit of 
$91.5bn. which has since been 
revised to $ 101 . 6 bn, as proposed 
in President Reagan’s budget 


A major reason for opposi- 
tion to President Reagan's 
original budget was that such 
deficits were regarded as exces- 
sive. 

The best outcome now being 
expected would be a. deficit of 
about SlOObn, even on the 
assumption of close co-operation 
between the President and both 
parties in Congress. 

The Brooklands Institution, 
the leading liberal economic 
research foundation, yesterday 
said the U.S. economy would 
go through a series of recessions 
and aborted recoveries unless 
there was a change in both the 
budgetary stance and in mone- 
tary policy. 

These, it said, are on “a 
collision course," and it urged 
a compromise whereby the Fed 
would loosen its monetary 
target s in exchange for Con- 
gressional action to reduce 
deficits, which would cairn 
infiationary fears in the finan- 
cial fears in the finan cial 
markets. 

The main feature of any 
compjromise that is likely to 
prove unacceptable to President 
Reagan would be proposals for 
increasing taxes and cutting 
defence spending. 

The Congressional Democrats, 
on the other hand, are unlikely 
to accept cuts in social security 
pensions and other social pro- 
gram es 


Family incomes unchanged 
over ten-year period 


BY PAUL BETTS IN NEW YORK 


PEOPLE in the UJS. may have 
enjoyed a general increase in 
their standard of .living and in 
the level of education during 
the past decade, but slow 
economic growth has led to 
little, if any, improvement in 
family income and poverty. 

This is the broad picture 
which emerges from the findings 
of the 1980 U.S. census just re- 
leased by the census bureau. 
The study— -“a snapshot of the 
country,” according to Mr Bruce 
Chapman, the bureau's director 
— was based on a form filled out 
by one in every five U.S. 
citizens. 

It confirms many trends 
which have been increasingly 
evident in recent years -includ- 
ing a migration from the North- 
east and Middle West to the 
South and West, a dramatic re- 
daction in the size of houses 
holds, a marked change in the 
pattern of home-ownership, and 
a significant expansion in the 
workforce with women account- 
ing for mast of the increase. 

The most remarkable finding 
is that for the first time in the 
country's history more than 
half the citizens over 25 had 
completed at least four years' 
high school education. 

Most encouraging was the 
sharp rise in the level of educa- 
tion among blacks. Only 20 per 
cent of blacks had finished high 
school in 1960. In 1970 the 
figure rose to 34 per cent. By 
1980. the figure had grown to 
50.6 per cent. 

The overall population rose to 


226.5m in 1980 from 203m in 
1970. This 'was made up of 
189m whites. 26.5m blacks, 3.7m 
Asians and 7.2m Eskimos, 
Indians and others. 

The civilian work force rose ■ 
from 80m in 1970 to~ 104.5m 
by 1980. The increase, in the 
number of women was 44.6 per 
cent compared with 20 per cent 
for men. 

Despite general improve- 
ments in the standard of living, 
including a sharp rise in the 
use of ahr conditioning by house- 
holds. family Income remained 
flat during the 10-year period 
after adjustments for inflation. 
There was no significant change 
in median household income 
which was 316,830 by the end 
of tiie decade. 

Real per capita income, how- 
ever. rose 18 per cent to $7,313. 
But households by the end of 
the decade were much smaller 
with fewer children and more 
people living alone. Smaller 
households are more expensive 
to maintain per person, thus 
census officiate, claimed the gain 
in per capita income was, in 
real terms, very smalL 

Reflecting the country’s low 
level of growth, 12.5 per cent 
of citizens lived in poverty. This 
is about one in eight The 
definition of poverty, now under 
scrutiny, is based on income of 
$7,400 for a family of four. A 
decade earlier, 13.7 per cent 
of citizens lived in poverty. 

The poverty figure for whites 
was 9.4 per cent for Wacfcs 30.2 
per cent and for Hispanics 23.8 


Salvador 
‘massacre’ 
investigated 
by U.S. 

By Our Washington 

Correspondent 

THE U.S. embassy in El Sal- 
vador is investigating an 
alleged massacre of 48 un- 
armed peasants by 
Salvadorean soldiers. The 
killings, which are reported 
to have taken place on Sun- 
day at a place which had been 
used by guerrillas, could 
further undermine the fragile 
credibility of U.5. foreign 
policy in Central America. 

Attention in the U.S. Is at 
present focused on the Falk- 
land Islands, but interest in 
El Salvador, -Guatemala and 
Nicaragua is likely to revive 
as Congress reassembles and 
a new right-wing Government 
in El Salvador, takes shape, 
probably with only token re- 
presentation of the moderate 
Christian Democrat Party. 

Leaks from the State- 
Department in recent days 
have suggested that the U& 
is deliberately stalling on its 
offer to enter into negotia- 
tions with Nicaragua's on 
reducing tensions in the 
region. The Administration 
appears to have been taken by 
surprise by Nicaragua’s will- 
ingness to start talking on a 
nine-point plan to normalise 
relations with the U.S. 

The State Department is 
thought to believe that Nica- 
ragua's position can be 
weakened further if the U.S. 
plays for time while quietly 
encouraging anti-Govemmeiit 
forces both within and out- 
side Nicaragua. 

Once attention moves away 
from the Falklands, particu- 
larly if the U.S. is forced to 
abandon its even-handedness 
Congress Is likely to mount 
renewed pressure on the 
Administration to reconsider 
its polities In Central 
America. 

Anns sales of 
$30bn reported 

By 'Our Washington 
Correspondent 

THE U.S. has committed 
itself to 930bn worth of over- 
seas arms sales this year, 
according to a report pub- 
lished yesterday by the 
Centre for Defence Informa- 
tion, and independent Wash- 
ington -research group. This 
compares with the Adminis- 
tration's own statement that 
arms sales for the 1982 fiscal 
year will be $10bn. 

The difference is due to tiie 
fact the official figures indude 
only actual deliveries and not 
commitments whieh have 
been approved. -The figure of 
$30bn far exceeds Soviet arms 
sales and is significantly more 
in real terms than the $17bn 
record set by the Ford 
Administration in 1975. 

The biggest arms commit- 
ments are the record $8J5bn 
sale of Airborne Warning and 
Control Systems (Awacs) and 
F-15 modifications to Saudi 
Arabia and the $3bn commit- 
ment to Egypt and Israel, -of 
which SLTbn win go to Israel 
and $L3ba to Egypt. 


Cuban code aims to woo foreign investors 


-A- 



19 8 2 

Johnson Matthey Chemicals 

Limited 

leading manufacturers and exporters of catalysts, metallising 
preparations, high purity and speciality chemicals; major refiners of gold 
and silver, and licensers of chemical processes have won 

THE QUEEN'S AWARD FOR 
EXPORT ACHIEVEMENT 1982 

This distinction resultsffom the application ofhfgh standards of skiff, 
service and integrity, not only by our employees in the United Kingdom 
but also by the many companies with whom we currently trade in more 
than 100 countries throughout the world. 


JM 


Johnson Matthey Chemicals Limited 

Orchard Road Royston Hertfordshire England 

Jeffreys Road Briimdown Enfield Middlesex England 


THE CUBAN government has 
started to open the door slightly, 
of its hitherto closed economy 
to foreign investors. A new in- 
vestment code is offering poten- 
tial investors joint ventures 
with Cuban state agencies, and 
ft range of incentives not unlike 
those offered by other develop- 
ing countries seeking to attract 
foreign capital. 

According to information 
from the Cuhan Chamber of 
Commerce which has been made 
available here, the new foreign 
Investment law offers potential 
investors up to a 49 per cent 
share in joint ventures. This 
lever can be raised in special 
cases subject to approval by the 
Cuban government. 

Investors are promised 
freedom in selecting ttieir 
directors and managers, setting 
their prices and exporting and 
importing according to their 
needs. 

Potential investors have also 
been promised unhindered 
repatriation of profits and 
-dividends, and the law stipu- 
lates that taxes to the Cuban 
government are not to be higher 
than 30 per cent of companies’ 
net annual profits from their 
operations in Cuha. 

- Some - companies, possibly 


The U.S. Government has 
banned business and pleasure 
travel to Cuba in an effort to 
limit the flow of dollars to 
that country. Renter reports 
from Washington. “ Cuba will 
not be allowed to earn hard 
currency from tourist and 
business travel when it is 


those involved in the tourist 
trade, will he exempt from 
these taxes, as well as from 
import duties, and will be able 
to' import whatever managerial 
and technical skills they need. 

Cuban workers who are 
needed will be allowed to work 
for joint ventures, but the com- 
panies will be asked to pay 
national insurance to the 
government, equivalent to 25 
per cent of the salary of the 
local staff. The Cuban Govern- 
ment is demanding parity in 
salaries of Cuban and foreign 
executives. 

The efforts to attract foreign 
investors follow a shift in 
economic emphasis by the 
Cuban Government, started five 
years ago,, to Increase the level 
of its -trade '-with market 
economics, and' reduce its 


BY CANUTE JAMES IN KINGSTON 


sponsoring armed violence 
against our friends and allies,” 
Mr John Walker assistant 
Treasury Secretary, said. 

The ban, which will take 
effect on Slay. 15, does not 
apply to Americans who wish 
to visit close relatives living 
in Cuba. About 40 per cent 


of all travel from the U.S. 
to Cuba last year fell into 
that category, Mr Walker 
said. 

The new restrictions are 
almost identical to those in 
effect from 1963 until 1977, 
when President Garter 
liberalised travel policy 


dependence on the members of 
the Council for Mutual 
Economic Assistance . (Come- 
con). 

It was as a consequence of 
this shift that Cuba's trade 
with the West in 1980 showed 
a surplus at $5 20m. But 73 per 
cent of the island’s trade is still 
with the Eastern bloc, and the 
positive benefits of trade with 
the West were wiped out by a 
deficit of $89 Om on trade with 
Comecon in 19S0. 

The new investment code is 
also likely to be conceived as 
one means of dealing with 
several immediate problems in 
the economy, including a short- 
age of hard currency.' The 
sugar industry, for example, 
which is the foundation of the 
Cuban economy, appears likely 
to yield 7.9m tonnes this year, 


slightly up on last year. But 
Cuba's projected earnings have 
been hit by falling prices. 

The Cuban Government is 
also apparently hoping that Ihe 
jobs created will help to reduce 
what has been admitted to be 
a high level of disguised unem- 
ployment in the island. 

Cuba has been trying for 
several years to get foreign 
companies interested in tourism. 
The government's intention is 
partly to rebuild Cuba's pre- 
revolutionary image as the 
Caribbean's leading tourist 
resort. 

The government is in the 
middle of a major programme 
of rehabilitating existing hotels 
and building 30 new hotels to 
bring the island's capacity to 
20,200 rooms. Partners are 
being sought for building and 


running the new’ hotels and 
bankers here have said this is 
one area in which the Cuban 
government may be willing to 
raise the equity level of foreign 
concerns above 49 per cent. 

The Cuban government has 
set the ball rolling in the Cayo 
Largo area, where it recently 
opened a new hotel. 

The government also has 
major plans for developing and 
expanding other areas of the 
economy. Many of these plans 
have been gathering dust in 
ministry offices because of a 
lack of fuuds and expen ise: 
Investors indicating on interest 
may be shown them. 

These plans include efforts to 
raise nickel production by 250 
per cent ahove lost year’s 
3S,000 tonnes and to increase 
citrus exports. There are also 
plans for machinery for the 
sugar industry' and motor 
vehicle assembly. Growing in- 
dications of oil fields have also 
lead the Havana government to 
seek partner* for exploration 
and exploitation. 

The Cuban government 
could reasonably expect some 
interest from Canadian con- ' 

cerns and possibly from 
Western Europe and Latin 
America. 


Resignations clear way for Chilean shuffle 


BY MARY HELEN SPOONER IN SANTIAGO 


ALL MEMBERS of Chile's 
Cabinet has submitted their 
resignations to allow General 
Augusto Pinochet, the country’s 
ruler to carry out a reshuffle. 

A Government statement said 
the Changes would not involve 
any modifications of the 
Pinochet regime’s free market 
economic policies or Chile's 
controversial exchange rate, 

The Chilean peso was set at 
39 to the dollar in mid-1979. 
Chilean officials have insisted 
repeatedly that no devaluation 
is under consideration. 

The communique made in- 


direct references to the Falk- 
land Islands crisis, the brutal 
murder of a dissident trade . 
union leader two months ago 
and a recent scandal involving 
members of Chile’s military 
police force, the Carabineros, 
who were linked to a series of 
murders in the coastal resort of 
Vina del Mar. 

The statement cited “prob- 
lems of i co-ordination among 
security agencies" and “an 
international situation that is 
conflict ridden, both in the 
economic as well as in the poli- 
tical arena." It said the situa- 
tion “ has been used once again 


by Marxism ... in an effort to 
undermine the military govern- 
ment.*’ 

General Pinochet periodically 
requests his Ministers and other 
Cabinet level officials to submit 
their resignations prior to 
announcing new appointments 
or replacements. He then rejects 
the resignations of those who 
are to remain in ‘their posts. 

Most Cabinet changes in the 
past have taken place at the 
end of the year. In December 
General Pinochet replaced two 
civilian . members of his 
economic team, the Planning 
Minister, Sr Alvaro Donoso and 


the Mines Minister, Sr Jose 
Pinera, and appointed military 
officers in their places. 

The latest resignations have 
spurred speculation that 
authorities investigating the 
trade unionist's death or the 
Vina del Mar murders have 
uncovered evidence potentially 
embarrassing to the regime. In 
both instances the Government 
had promised a full investiga- 
tion. and punishment of the 
guilty. 

Gen Pinochet: no. change 
expected in economic policy 




life as reliable as aU'BiXcopien 


life has a nasty habit of letting you 
down when you least expect it 

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Financial Times Wednesday April 2i_1982 


WORLD TRADE NEWS 


Indonesia to enter 
Slbn joint venture 
in petrochemicals 

** WCHMD COWPER IN. JAKARTA 

10 enter a ^bn P&rtamliia says a decl- 

L w ®/ venture with US. sion is expected to be made in 
“jJJJ 'Japanese Petrochemical June. 

to design, build and The signing comes just two 
•™“«Se a large part of an months after Pertamina con- 
itiv P^’^emira! complex, duded a contract with Tfayssen 
*»2? e coatta ct was signed yes- ■ Rheinstal GmbH of West Ger- 
terday by Pertamina. the state- many and Kellogg Overseas of 
owned oil company, and Exxon tbe U.S. to design, engineer and 
Chemical of the UJS. and Tonen operate a .$1.6bn aromatics 
Petrochemical (TSK) of Japan, petrochemicals complex in sooth 
The plant they are to build is Sumatra, 
to be -set up at Ann in North Construction is expected to- 
Swraatra. It win be the second ■ star * yea* and AotOA be 
stage of a 82bn, threes tag e completed by the end of 1987, 
complex. with the plants coming on 

The joint venture will be 45 st3 ^ am **7 1988 ; 
per cent owned by Exxon- The Indonesian Government 
Chemical, 40 per cent by ** also negotiating with two 
Pertamina and 15 per cent by Japanese companies, Asatoi 
TSK, a subsidiary of Toa Nemy- Cbeimcak. an independent con- 
c*ogyo_a Japanese company «*?• “gt 

25 per cent owned bv Exxon. 

25 per cent by Mobil and 50 st ^f. of - tfae °}^ ns co ™^l K ' r 
per cent by the Japanese public. tJwSwt ^ 

The thrre partners will con- gf £&T*M0n? 5u £ 
struct and operate three major ® ? * «?? 2LSSSl». 1w i a 

nfunk a fi/yt fnnnn nfhnTia VO1V0 til? COHSuTllCtl Oil Of 3 

♦ tb , 270,000 -tonne vlnyichloride 
tonne low monomer plant and a cfalor 
density polyethylene plant and -ib a « n i a nL. 
a 70.000 tome high density poly- ZT P r v 
ethvlene plant - This part of the complex was 

Pertamina plans to own and originally expected to be a 
operate the first stage of the £“*. mature between Petr^ 
complex, which involves the chimia Gresik, a state-owned 
construction of an ethane petrochemical company, and 
extraction unit designed to pro- one *“ e two Japanese con- 
duce ethane from natural gas. test ants. 

The state oil company is But the Indonesian Govern- 
reviewmg bids from some 12 ment is now thought to be con- 
contractors. Including Davy sidering the possibility of turn- 
McKee of the UK. The plant is ing it over to a wholly privately- 
expected to cost upwards of owned domestic company. 


U.S. to 
buy four 
British 
airliners 

By Michael Donne, 

Aerospace Correspondent 

AIR WISCONSIN,, a leading 
US. regional airline, has 
arranged a 856m (£31m) 

credit with a group of banks 
for the purchase of four 
British Aerospace BAe 146 
Series 200 four-jet airliners, 
for delivery In March next 
year. 

The credit is supported sub- 
stantially by the UK Export 
Credits Guarantee Depart- 
ment Continental Illinois, the 
merchant banking subsidiary 
of Continental Illinois Cor- 
poration, arranged and is 
agent for the credit 
Banks participating, in 
addition to Continental HU- 
no is National Bank and Trust 
Company of Chicago, are 
Barclays' Bank International, 
Chase Manhattan Bank NA, 
The First National Bank of 
Boston, The First Wisconsin 
National Bank of Milwaukee, 
Fort Wayne National Bank, 
First National Bank of Apple- 
ton and Valley Bank of 
Appleton. 

The contract for the air- 
craft was signed last Hay, and 
Is worth about $70m. The 
balance of the cash will be 
met by Air Wisconsin from 
its own resources. 

• Plessey Airports, part of 
the Plessey Group, has won 
a further £5m contract from 
the United Repnblic of 
Cameroon, for work on the 
Garoua airport. 





19 8 2 


THE QUEEN'S AWARD FOR EXPORT ACHEVENEMT1S82 


Pirelli General pic, the British electric cable 
manufacturing and installation group which has 
been established in Britain for nearly 
seventy years, is proud to have received 
The Queen’s Award for Export Achievement. 

We would like to thank our customers, employees, 
and all those associated with the Company at home 
and overseas for their contribution towards 
the achievement of this Award. 


IRELLI 

L 


Pirelli General pic. P.0. Box 4, Southampton 


tPi 


Johnston Pipes 

of Telford, Shropshire 


are 

proud to receive 


The Queen’s Award 
for Export Achievement 
we are privileged to have successfully exported 
Johnston Armafiow glass reinforced plastic pipes 
for pressure and gravity applications . 
to the following countries 

Saudi Arabia, Abu Dhabi, Qatar, Bahrain, Libya, 
Jordan, Iraq, Ireland, Hong Kong, Nigeria. Yemen, Egypt 

Johnston Pipes Ltd. 

Dosely TELFORD Shropshire TF4 3BX 
Telephone Telford 505362 
Telex 35179 

Member of J. B. Holdings. p.l.C- 



BT DAVID HOU 5 EGO JN PARIS 


PROTECTIONISM, LIKE adul- 
tery, is not a thing to proclaim 
in advance. 

At the end of last year 
France’s well publicised plans 
to hold imports through . a 
“reconquest of the domestic 
market” resulted In a sharp 
protest from France’s European 
partners worried by the threat 
of increased restrictions on the 
flow of EEC goods- into Fance. 

Since then President 
Mitterrand’s administration has 
been anxious to -avoid provoking 
fresh charges of protectionism. 
M Pierre Hauroy. the Prime 
Minister, recently said France 
had no intention of dosing its 
frontiers and that the Govern- 
ment’s main concern was to 
maintain a French presence in 
ail sectors of industry. 

But since the Socialists took 
power last year there have 
undoubtedly been changes in 
French trade policy. M Raymond 
Barre, the former Prime 
Minister, was an aggressive free 
marketeer who tolerated restric- 
tions on competition as a relic 
of France's pash Even so. he 
was something of a lone 
crusader in an administration 
which broadly believed that vul- 
nerable industries needed tem- 
porary assistance to give them 
time to adjust and which was 
tight-fisted over letting foreign 
investors into the French 
market. 

M Pierre Mauroy's administra- 
tion has reverted to the more 
traditional French view— and 
one gaining ground elsewhere 
in Europe— that unrestrained 
competition risks the destruc- 
tion of whole industries and 
unacceptably high regional 
pockets of unemployment. 
French-made motor cycles and 
photographic equipment have 
disappeared from the market 
The Socialists fear that French 
textiles, leather goods, machine 
tools and some household elec- 
tronic goods risk following a 
similar path unless restructur- 
ing is accompanied by a respite 
from the aggressive competition 
of East Europe,, the Far East 
and Japan. 

Concern in 
. France over 
Somali deal 

By Terry Dodsworth and David 
White in Paris 

FRENCH state-controlled tele- 
communications interests are 
worried that Italian competitors 
may seek to take at least part 
of a contract they have con- 
cluded with Somalia for a 
ready-made telephone, network. 

A FFr 450m (£40m) deal was 
signed earlier this year between 
a consortium of French com- 
panies and the Somali Govern- 
ment, according to CIT-Alcatel, 
communications branch of the 
nationalised CGE group. 

The agreement, which covers 
two electronic exchanges, 
nationwide cable links and 
microwave installations, had not 
been officially announced, 
pending final settlement of 
the accompanying financial 
package. * 

The consortium also includes 
CGE’s cable subsidiary Cables 
de Lyon and Thomson-CSF, 
which would supply the micro- 
wave equipment. 

It had been hoped that the 
deal would be finalised when 
President Siad Barre of Somalia 
visited France recently. But 
the Italian company Italcahle, 
part of the state IRI empire, is 
understood to have put up 
rival proposals, involving in 
particular the cable network 
which accounts for a large part 
of the overall Investment 
dT-Alcatel, which leads the 
French consortium and is due 
to supply two of its E10 digital 
exchanges, confirmed that some 
financing remained to be fixed 
up. About two-thirds of the 
total is expected to be covered 
by financing arranged separately 
by the Somali authorities, draw- 
ing on Arab funds. The Somalis 
are looking to the French 
Government to provide the rest 
A large part of the country’s 
current telephone equipment- 
was Italian-supplied. 

The new system is due to 
have an initial capacity of 45,000 
lines, with provision for expan- 
sion to 100,000 lines within five 
to six years. 

The French telecommunica- 
tions companies, under some 
pressure at present to maintain 
employment, say that the cable 
side of the deal would guarantee 
about 1,000 jobs at Cables de 
Lyon over a period of about a 
year. 

Japan leases 
Boeing 747 
to Air France 

TOKYO— Two Japanese com- 
panies have arranged the leas- 
ing of a Boeing 747 airliner to 
Air France, an official for the 
company said. 

The Japan Leasing Corpora- , 
turn and the Tokyo Leasing 
Company sold the airliner to the 
leasing department' of Manu- ; 
facturers Hanover Trust of the 
U.S. for Y30bn (£68m), with 
35 per cent down-payment and 
the rest to be met by instal-j 
mentfi over 18 years. 

The airliner was then leased : 
to Air France through the Bank 
of New York, which acted as 
trustee owner. 

The arrangement was made 
.in this fashion because Air 
France has yen ' income and 
could avert exchange-rate fluc- 
tuation risk, the official said. 
Reuter 


As restructuring in many 

mdustries— and - particularly in 

high technology sectors — 
requires more than ft national 
market, the French want action . 
oo a, European level. Hence the 
pleasure recently m Paris that 
the communique of the Brussels 
European Commission warned 
the Japanese that they must 
run an economic and trading 
policy more compatible with 
that of . other Industrialised 
nations. The matter was one of 
the many 'podisfs raised during 
President Francois Mitterrand’s 
visit to Japan last week. 

The other pressure rein- 
forcing old protectionist itches 
in France' is the widening of 
the French trade deficit M 
Barre’s priority was .the rapid 
expansion of French exports 
which in volume terms grew at 
an annual average of 6.5 pex 
cent a year from 1976-81. 

The Socialists have been 
unlucky to have taken over at 
a time when French exports' are 
slowing both because of world 
recession and the economic 
difficulties of France’s' two 
fastest growing markets — the 
Opec and' Comecon nations. 
“Now” says an official at the 
Ministry of" External Trade, 
“we must get -to know our 
imports better — what they are 
and where htey come from.” 

In practice the Government 
is finding little scope for cut- 
ting imports because of the 
increased importance of trade 
in French economic growth and 
because France's dose, inter- 
dependence with her trading 
partners leaves it open to 
reprisals. 

Exports have climbed to 27 
per cent of GDP and imports to 
26 per cent- Nearly 50 per cent 
of French exports are absorbed 
by the EEC and 68 per cent by 
the industrialised nations of the 
Organisation for Economic 
Co-operation and Development. 

The key figures that worry 
French officials are: 

• The French trade deficit is 
now expanding at an annual 
rate of about FFr 80i>n ifSbn) 
as against a level of FFr 50bn 






President Mitterrand (left):- anxious to avoid charges and 
Premier Hauroy: no intention of closing Lon tiers 


last autumn. 

• France’s deficit with the EEC 
has risen almost fivefold since 
1979 to FFr 30.3bn in 1981 con- 
firming official fears of a loss 
of competitiveness by French 
industry. With -West Germany 
the deficit has grown from 
FFr ll.lbn in 1979 to FFr 22.7bn 
last year. 

• Imports as a share of the 
domestic market for industrial 
products have risen from 22 
per cent in 1978 to 28 per cent 
last year. Import penetration is 
stiH increasing. 

In an. internal commentary on 
the 1981 trade statistics, the 
Trade Ministry spoke of -the 
need- to contain imports while 
boosting exports. On imports, 
the Ministry proposed stronger 
controls against dumping, 
against financial aid' and sub- 


sidies provided to foreign manu- 
facturers, and against the abuse 
of EEC markets. 

M Michel Jobert. the Trade 
Minister, is attempting to put 
some of these recommendations 
into - action. He is Setting op 
within bis Department a new 
unit to monitor more closely the 
flow of imparts into France and 
help' 'reduce those thought 
unnecessary. 

He has proposed creation of 
a commission to hear Industry's 
complaints against unfair .com- 
petition, and he Is pressing the 
EEC to adopt new machinery 
to counter import surges and 
dumping..- ....... 

The European Commission 
has found that five sectoral 
plans so far proposed by the 
Government' for re or g an i sing 
industries as part of the “ recon- 


quest of the domestic market, 0 
- 7 In machine tools the 
is. to reduce imports from 60 to 
30 per coot id all sold in France: 
In furniture from 28-15 per cent 
and In shoes from 25 to 10 per 
tent. 

■ In machine tools, the pro- 
gramme is .being heW up in 
part by the failure of education 
institutes to place new orders 
for- French-made hardware. The 
•toy industry equally - has run 
into resistance from wholesalers 
awl retailers. . The furniture 
industry, which- has reached 
agreement on raising funds to 
promote innovation, says it has 
signed agreements . ** to buy 
French with only a few major 
retailers. 

In line with similar measures 
taken by its predecessors the 
new administration has con- 
tinued' to take action against 
* sensitive” imports. It has I 
reduced hte quota on Japanese 
TVs to 84,000 this year from ! 
88,000 last year. It has imposed t 
fresh quotas on Hong Kong 
watches — which are being chal- 
lenged by the Hong Kong . 
authorities. It continues lo use 

the time-honoured devices of 
customs, approval requirements 
lo delay the import of Italian 
pedi overs, cars (Japanese cars 
are restricted to 3 per cent of 
the French market) and 
machine tools. 

The State-dominated health * 
service wiH be encouraged to . 
make its purchases both of 
medical equipment and of drugs • 
from French manufacturers. 

The Government has 
generally been more willing 
than its predecessor to open 
the French domestic market to 
foreign investors. but it 
vigor o usly opposes Japanese 
companies investing in EEC 
States as a way of establishing 
a foothold for export elsewhere J 
in the Community. - 

Should the trade deficit grow 
worse or unemployment con- 
tinue at high levels, French 
pressure for tough action 
against competition from Japan 
and elsewhere in the Far East 
is bound to- grow: 


S. African power station plant in demand 


BY BERNARD SIMON IN JOHANNESBURG 


A SPATE of big orders for 
power station equipment has 
recently illustrated the extent 
to which the benefits of doing 
business with South Africa fre- 
quently seem to outweigh 
political pressures on foreign 
companies to loosen commercial 
| links with that country. 

Escom, 1 .the state-owned 
electricity utility, is one of the 
world’s biggest customers for 
■power station equipment In the 
past two years it has ordered 
more generating plant than all 
the utilities hi the U.S. com- 
bined. This week it issued a 
letter of Intent 4o the British 
engineering company GEC for 
six 600 MW turbine generators. 

With a price of over R450m 
(■£250ra) the contract represents 
the company’s biggest order, 
and brings GEC’s business with 
Escom over the past seven years 
to well over Elba. 

The power station for which 
the GEC turbines will be built, 
known as Station D, is the fifth 
3,600 MW coal-fired plant un- 
veiled by Escom in the last two 
years. In addition, construction 
will start soon on a sixth 
station with a similar 
generating capacity. 

These six projects, as weH as 


the country’s first nuclear power 
station now nearing completion 
north of Cape Town and a new 
400 MW pump storage scheme 
also in the Western Cape, wiH 
almost double Escom’s gen- 
erating capacity to around 
40,000 MW over the next decade, 
ah. average annual increase of 
6.8 per cent. 

Long-range projections . in- 
dicate that capacity will have to 
be raised by another 40,000 MW 
during the 1990s. Electricity 
sales are currently growing by 
more than 7 per cent a year. 

The rapid growth of the 
South African economy in re- 
cent years is one reason for the 
spate of power stations. Further- 
mare, electricity's share of total 
energy consumption is rising 
fast— from 10 per cent to 20 
per cent in the last three 
decades. 

Recent disruptions in supplies 
from the Cabora Bassy hydro- 
electric project in Mozambique, 
which accounted for about 8 
per cent of Escom's total 
capacity, have increased the 
urgency of bringing power 
stations <m stream. 

The total cost of the six 
power stations on the drawing 
boards is about R12bn, a useful 


sum for suppliers, whose orders 
from utilities in many other 
parts of the world have shrunk 
markedly in recent years. 

Escom has had no shortage 
of tenderers for its contracts, 
particularly the large orders for 
boilers— with an average value 
of RTOOm for each power 
station— and turbine generators. 

-Nine U.S„ European and* 
Japanese companies, including . 
Brown Boveri. ‘ Westinghouse. 
General Electric, MAN and 
Alsthom Allantique, tendered 
for the turbine contract for the 
Kh a tala power station, which - 
was awarded last January to 
Kraflwerke-Union. a subsidiary 
of Siemens of West Germany. 

Boiler and generator con- 
tracts for four of the j&ix new 
power stations have already 
been decided. 

Escom has spread Its favours 
around. Among the turbine 
suppliers, a MAN-Alsthom 
All antique consortium, and GEC 
each have orders for two. power- 
stations— including the latest 
letter of intent— and KWU for . 
one. 

Boiler orders have gone to 
L. and C. Steinmuller of West 
Germany, a West German- 
French consortium ..of Stein 


Industrie . and EVT, Babcock 
Engineering of Britain and 
Combustion Engineering of the 
U.S. 

The Combustion Engineering 
contract was the first major 
Escom order in sererai years 
to a U.S. company, and has been 
interpreted widely as an Indica- 
tion of the increasingly dose 
. political and commercial . tics 
between South Africa and the 
U.S. • 

A British company— NEI— 
will also benefit handsomely 
from the Combustion Engineer- 
ing contract. Under a licensing 
agreement, NEI is manufactur- 
ing a considerable portion of 
the equipment at its plants in 
Britain and South Africa. 

GEC’s turbine generator 
order is by no means its only 
business with Escom. Mr Tony 
Charles, the company's chief 
executive in South Africa, says 
GEC has also sui plied motors, 
switchgear and tr insformers. 

“ Escom is one #f our major 
customers” Mr Charles says. 
GEC intends to tender for the 
turbine order for the sixth 
power station, but chances are 
that the next contract will go 
to one of its competitors. 



Now you can experience a live demonstration 
of the most powerful trading system 
the world has ever seen. 


INTEX, The International Futures 
Exchange (Bermuda) Ltd., brings the 
commodity futures market to the 
member. Now you can see this for your- 
self. Because INTEX is inviting you to see ' 
and participate in a demonstration of 
the actual INTEX trading system ar any 
of the locations listed here. 

Demonstration Agenda 

Here’s what each demonstration will offer: 

■ Yon will be able to see and try INTEX 
equipment. • 

■ You will be able to ask questions and 
have them answered by INTEX senior 
m a n agement. 

■ Ywrwill hear the latest developments 
about key INTEX plans, contract details 
and scheduling. 

■ INTEX will bring you up to date on its 


Hong Kong April 26,27,28. 

Singapore 

April 29,30 

Bahrain 

May 1*2 

London 

May 5, 6, 7 


membership and membership deadlines. 

INTEX will also welco me your 
opinions. Because INTEX is designed ■■ 
around the needs of today’s futures 
trades you will be able to tell us your 
personal preferences aboutcontracts and 
the Exchanges operating schedule. 

But the live ^demonstration will be the 
high point of the day. A complete trading 
station simUarto the one which trill go - ■ 
into the home or office locaticai of your . 


choice — w31 be on band at each meeting. 
. 'So you can see for yourself just how fast 
: and error-free futures trading can be. 

INTEX managwriwif tp-HI alcr, Hiomeg 

\ with you the specifics of installation of 
trading and co mmnnipari nn*: g yc twi n s. 

- Of course, the number of people whom. 
INTEX can properly accommodate is 
limited . So, to ensure that you can be a 
part of this truly important demonstra- 
tion, please contact one of the inter 
representatives listed below at your 
earliest opportunity. 

. ftn~EX Chairman Eugene M. Gtnm. 
mer, President Junius W. Peake and 
INTEX Systems President Thomas J. 
Saleh look forward to meeting yon and 
demonstrating to you that INTEX is, 
without question, the most powerful 
. .trading system the world has ever seen. 


To rescrvtyour placcatanENi bji<ieipoiisrration,contyt^t there 1 "^^b elow: 


HONGKONG 

Mr Raymond Phan, General Manager 

International Commoditlc. 

'Clearing House Limited 
211-214 Hutchison House 
HarcovrtKoad 
HoogKong 
Phone 5-265721 
Tdex76375HX 


SINGAPORE 
DeepakBbarvam _- 
Telephone 011-65-221-0555 


- BAHRAIN 
1 Telephone 251683 >• ■ 

- . Telex 9233 CLMBA BN 


LONDON 

MtM-E. Weeks, Executive Dira^sr 
" International Commodities 
■ - dearing House Unotod 
Roman Wall House 
1*2 Cnitched Friars 
London EC3N 2AN, 

Telephone 01-488-3200 
Telex 887234 



„ „ The Intermtional Futuna Red* 

Tweeny Baudins,40QiBxcnStit^HaimIlan I 5'24,Bcrmiida (809-29) i 












Financial Times Wednesday April 21 19S2 




There are two ways a fleet 
operator can get a good nights sleep. 

Shut his eyes on how much his fleet 
actually costs to run. And wake up to a 
nightmare. 

Or open them to PHH Fleet 
Management Services - by opening the 
PHH brochure. And wake up to fleet 
cost control. 

Theflock. 

Head the PHH brochure about 
making your business more competitive by 
making your fleet more efficient 

About obtaining greater discounts than 
you could hope for independently. On any 
make, or makes, of car, truck or van. 

And about ensuring the vehicles you use 
are the best to meet your Company’s needs. 

In terms of fuel costs, maintenance costs, depreciation 
and general suitability. . 





How fleet operators 


t 


i 


r "'■a 


ym 

r: iawfS 




Hie good shepherd 

Read the PHH brochure about Fleetcard. The control you 
need over servicing and repair costs. (Here, traditionally, the 
unsuspecting have wool pulled over their eyes.) 

You’ll read about how PHH monitor service records and 
garage invoices so effectively that you can expect to shear a 
large slice off your maintenance bill. 

And about saving on administrative time and costs. 

You get just one bill a fortnight, however many bills PHH 

receive on your behalf. 



Read the PHH brochure 
about all discounts negotiated 
by PHH being passed on to 
you in full. 

And about PHH’s complete 
independence from the motor 
industry itself -manufacturing, 
distribution and retailing. 

So you know it’s your best 
interests they have at heart 





*,.r« 



■ v \ 

7 • % .? 


*7.* *. ' 

•. - ; 


One jump ahead. 

Read the PHH brochure about the sophisticated PHH 
computer systems. 

About how they evaluate individual vehicle running costs 
against data on every make of vehicle on the road. 

About how they advise on where and when to sell your 
vehicles. Which - with PHH’s full-time specialists co-ordinating 
the sale and vehicle preparation - can mean at least an extra 
£100 a vehicle. ' 

And about overall savings through PHH. Ip per mile per 
vehicle is often attained. 

All this - and more - in return for a remarkably low monthly 
management fee. 

Sleep on it. With the help of that brochure. 


A little bedtime reading. 

Complete and return the coupon or simply send your 

C C-.'CV.. 'i r ■ • I-.-1 I * Ff r~\F If r F'-N • 






/ letterhead or business card to PHH Services 

/ - Limited at the address below. 

Or contact Richard Netherclift by telephone 
(0793 40271) or Telex (449158). 

To PHH Services Limited, 


Princes House, Princes Street, Swindon SN1 2HL 


Send me my bedtime reading, please. 
Name 


Position 


Company 


' Address 


• -* A ' 


PHH 
Services Ltd. 

fleet cost control 


Telephone. 


f&j INTERNATIONAL 

^ P W FLEET MANAGEMENT- LEASING ’FUELCONT 


FUELCONTROL-EMPlCWa REIOCAHON 






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Financial limes Wednesday April 21 1982 




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l ■ WM ’’S' . 1 



MedalKon Service Class is Delta’s 
special business class for much less 
than First Class Fare. It’s ideal for busi- 
ness travellers. All 2-by-2 seating for ^ 
extra comfort. Your own separate seating 
area, too. A quiet atmosphere in which . 
you can work or just relax. Your beverage 
list includes cocktails, fine wines and 
liqueurs. You get an increased baggage 
allowance, too. All at no extra charge. 
Delta also has Medallion Service Class 
from Frankfurt to Atlanta (no separate 
cabin area). 

Delta flies nonstop to Atlanta 
from London every day except Monday 
and Wednesday (daily starting April 25). 
From Frankfurt, every day except Tues- 
day and Thursday ( daily starting April 
25 ). And from Atlanta, Delta flies on to 
80 cities in the continental U.S A. Thke 
Delta to Atlanta and without changing 
airlines you can fly to cities coast 
to coast. 

For information and reservations, 
call your Travel Agent. Or call Delta in 
London on (01) 668-0935 or (01) 668-9135. 
Tfelex 87480. Or call Delta in Frankfurt 
on 0631 23 30 24, Tfelex 0416233. Delta 
Ticket Offices are at 140 Regent Street, 
London, W1R 6AT and Friedensstrasse 
7, 6000 Frankfurt/Main. Schedules sub- 
ject to change without notice. 

Fly Delta to the 1982 World’s ffei? 
MayOctober 1982. Knoxville, Ifennessee. 

Delta is the official airline of the 1982 
Knoxville World’s Fain 





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ENERGY REVIEW 


High oil and gas stakes in Atlantic Canada 


By Paul Betts in New York 


A SHORT 18 months ago, -the 
Atlantic coast of Canada, 
seemed poised to become a new ' 
North Sea. A boom atmosphere 
swept across lie 'Atlantic 
provinces of Newfoundland, and 
Nova Scotia, historic Canadian 
“have not" provinces which, 
suddenly found' themselves bn ' 
the verge of an . imminent oil 
and gas bonanza. The stock 
prices of the major oil com- 
panies in the area, especially 
Mobil, the key player in the 
Canadian East Coast, were 
shooting up fuelled by the 
traditional speculative frenzy 
caused by any major discovery. 

The overall outlook of large 
offshore oil and gas reserves 
in the waters off Newfoundland 
and Nova Scotia ranging from 
lObn to 28bn barrels has not 
Changed. But the prevailing 
mood of optimism and excite- 
ment has disappeared. In all 
the local pubs' and drinking 
houses— of which there are a 
great many— the regulars keep 
asking aver and over again the 
same ~o Id question. “When is 
this oil thing going to happen?** 

A complex combination of 
peculiar factors has now placed 
a major question mark on the 
tuning of the development of- 
Canaaa’s promising Atlantic 
offshore resources. Political 
squabbles between the pro- 
vinces and the Federal Govern- 
ment are discouraging the oil 
companies to press- ahead with 
the $4bn to $5bn spending 
necessary to develop the oil 
fields In the Grand Banks off: 
Newfoundland and the $2bn to 
S3bn needed for the Sable 
Island gas fields in the waters 
off the eastern extremity . of 
Nova Scotia. Even more dis- 
couraging have been Ottawa’s 
national energy policies de- 
signed to bring all the country’s 
natural resources under 
Canadian control by the end of 
the decade. And all this has 
happened at a time of turmoil 
in the international oil market 
where declining demand and 
falling oil prices have put the 
squeeze on oil company spend- 
ing and cash flows. 

The picture for Atlantic 
Canada looked particularly 
bleak by last summer. Explora- 
tion activity had slowed down' 
to a small trickle, especially 
off Nova Scotia whose gas is 
perceived as less valuable than 
the oil off Newfoundland. 

In these circumstances, it is 
hardly ' surprising that • the 
speculators have lost, for the ' 
time being at least, interest: in* 
the Canadian AG attic.' offshore 
oil' and gas play, Mobil's share 


price, on the New Torw Stock 
Exchange, ' "for . example, - has 
dropped by more than 40 per 
cent since its highs Just over 
a year ' ago. ' More sigoficantly. 
the " provinces and indeed 
Ottawa "are . beginning to' get' 
worried. _' 

4 Fat' the" tWiT "Atlantic pro- 
vinces the stakes are extremely 
high. For the pasr few years, 
they have been betting on oil 
and gas for. their .future 
economic prosperity. But it is 
not just a question of revenues 
from the offshore resources. 
The provinces see themselves 
becoming major oil service 
centres not only for the off- 
shore activity in the Atlantic 
but also for the oil and gas in 
Arctic Canada and the Beaufort 

. Indeed, the two provinces 
have been competing to estab- 
lish themselves as the predomi- 
nant oil industry centre for the 
region. And In the last few 
weeks,' Nova Scotia appears to 
have ' won the edge over 
NewfoundlaSnL 

The province last month 
finally settled its dispute with 
Ottawa over jurisdiction in the 
Scotian ShelL 

After years of Juggling, 
Nova Scotia agreed to give the 
Federal Government ultimate 
authority in the management 
of its offshore- - resources in 
return for the lion’s share of 
oil and gas revenues. Although 
the agreement left unsettled 
the thorny - question of who 
technically owns.- the- offshore 
resources. It ended the uncer- 
tainty about who controls the 
offshore * industry. Moreover, 
the agreement has been struc- 
tured. over 42 years. 

The agreement goes a long 
way to clear the anxieties of 
oil -companies operating in the 
area. But as one American oil 
company warned, the agree- 
me nr still leaves unanswered 
the one thing oil companies 
want to know— a precise defi- 
nition of the price and return 
oil companies can expect from 
development and production of 
the gas resources; 

. Since - the agreement was 
signed between the province 
and ' the' Federal Government, 
offshore activity has been pick- 
ing up again. Mobil has just 
brought into the area the Zapata 
Scotian, the world's largest 
jack-up rig designed to work 
the shallow water around Sable 
Island with the capacity to -drill 
and complete holes toI8,Q00 ft 
Mobil h as also indicated that 
It is very encouraged- by its- 
Ventnre ' gas : field lq*s Sable 


QUEBEC 




/ NEW 
1 BRUNSWICK 


r Gulf or A NEVVFOUNDLANDi 
y? St. Lawrence S 






£Areas under Licence 


RESIDENTIAL PROPERTY 




PERTHSHIRE— GLENLYON 

PERTH 45 MILES - FORT I NG AIL 6 MILES - ABERFELOY IB MILES 


A -magnificent II 
residence, both m/| 
Scottish Glen amid 


INVERVAR LODGE 

18th Century Country House with detached second 
st/pertfy appointed and- equipped, situated in a spectacular 
nld typical Highland scenery. 



■^ULS. Land Sate on George* Bar* 


Island -which, subject - to 
acceptable pricing arrangements 
from the Canadian and 
provincial ' government, is 
already viewed by many as a 
viable commercial project. 

The sudden urgency dis- 
played by Nova Scotia to settle, 
after years of faltering negotia- 
tions, its offshore dispute with 
Ottawa was prompted by some- 
thing more than an effort to 
revive exploration activity at a 
time of a general slowdown in 
the oil industry at large. The 
province Is currently bidding 
for two so called “ mega- 
projects ■* which it openly 
regards as being more impor- 
tant than the gas play. 

The projects include . Dome 
Petroleum’s proposal to build in 
Atlantic Canada a huge ship- 
yard to construct a fleet of 
between 25 and 29 special ice 
breaking tankers to move oil 
from Dome’s Beaufort Sea field 
through the Northwest Passage 
all year round. Dome has 
already selected three possible 
sites in Nova Scotia for the 
shipyard which is estimated to 
cost more than §3 00m. But the 
.entire project with the fleet of 
special tankers taking about 20 
years to build would represent 
a total investment of about 

$9bn. _ 

• The other project is the pro- 


SWITZERLAND 

THERE IS GROWING CONCERN 
IN GREAT BRITAIN 
THAT EXCHANGE CONTROLS 
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FOREIGNERS can buy apartments 
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approximately 35 minutes from 
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NEAR THE BORDER OF GENEVA, 
built to your specifications.- Advise 
area preferred. 

Write to: Developer ' 
c/o GLOBE PLAN BA. Mon-Repoa 24 : 

*1005 Lausanne. Switzerland 
Tel: 121) 22 36 12 
Telex: 25185 metis eh 


FOR SALE BY PRIVATE BARGAIN -. 

Accommodation includes: 

INVERVAR LODGE 

Dining Room, Drawing Room, Library, Sitting Room, Breakfast Room. 
JGtchan and vanoiia Utility Rooms. 9 Main Bedrooms, 4 Bathrooms 
<1 an suite). Dressing Room end Study. Double Glazing. Full Central 
Heating. 

EASTS! INVERVAR 

Dining Room. Sitting Room. Kitchen, Utility Room, Shower Room. 
3 Bedrooms and Both room. Partial Double Glazing and Foil Central 
Heating. # ... 

Garage Block with further dwelling and extensive stores, Including 
2 Stables. 

Moat attractive landscaped gardens and woodland drive offering privacy 
end ait Biter, extending In total to 3.28 acres. 

Fishing Rights on Loch Tny. __ 


Rateable Values: Lodge £842 
Cottage £356 


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Estate Agents - Estate Factors - Valuators - Proparty Agents 
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Telegrams: 'AGENTS’ PERTH Telephone: 0738 28178/9 




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Wide choice or discount flights. Brochure, 
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SWITZERLAND 

Freehold property for sale to foreigners. 

We have a wide range of apartments in some of the 
most select locations . 

Choose from mountain or lakeside resorts. 

Excellent financing terms available. 

For advice and assistance,, call Immobiliere 
de Villars SA — ask for Mr. Christian Marich 
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Immobiliere de Villars SA + SodimSA 
PO Box 62 1884, Villarss/OUon, Switzerland 
Telephone 010 41 25/35 35 31 
Telex 456213 GESE CH 


OQQQO OQQOQOOOQQQQQO FRENCH 66 1 

S ^ ' -' l □ Teaching staff presence from 8 km, to 10 pjn. = 68 hours par 

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Brochure and references CERAN - 168 NIYEZE B 4880 SPA (Belgium) Telex 48850 
Tel. <lnlem.l 32.87.773915. 


FINANCIAL TIMES 

PUBLISHED IN LONDON & FRANKFURT 

Nod 0ffloc The FkoscBd That* United, tasksn Heme, 30 Cwnos Strut, Lands* ES4F 48T. 
TOce 8954871. Tste (MsmtUmgl 885038. Tvkiramc Hnarthse. I w6m Ttlqfipst. OMWOBD. 
naaMurt Office Tba Hwchi ThBM tEarepi) ud,' Mn 8 rtut i. 54, tt-ftOOD P uukft nt m m Mi l s 1. 
WtJt Bertamtr, Take 416143. Tcfcpfemc: 7396-0. BMariat FVreltuiilw 7UL Titac 4U0EL 
TflkfhME! 7598 157. 


INTERNATIONAL & BRITISH EDITORIAL & ADVERTISEMENT OFFICES 

Arnrterftm: P.O. Bat 32%, AmtertiBHC.Trlec IfaSAb Exprasetda 32, Madrid 3. Tab 4<a 6772. 
1*S27. TO: 276 7%. Ma a cfa rn tw i EAarfcf and JAerfbhf tnwtt 


I6SZ7. TO: 276 7%. 

BhnkgtSK EOttatU and Admrthka Gtwpe H*t, Bnra SL, M2 5HT. Trine 866613. TO 
WOT at, B15 1PC. Taluc 33&50. Tit 0W-H34 9380. 

QZl-4S4Cta2. Mok>«ir PmmiU la RafwnS 122-10, Snks 

Boom PrenhStf HAM Htssnlct 2-38, TOoc 6JJF. TO 535 X368, 

886956 2. TO 210033. Hatcoa: Ketarnky 2A, AputustXUeacevi. 

Breen!*! 39 Rsa Dnaie. Trine Z3283. Fkc 512 Tehee 413300 FtaHW. TO 245 1635. 

7404. TA 512 9BJ. y^u rwriif and ' 75 

Buam* Ahem EdiffrSs Slice Fbs 7, Ns. 74 ffnrfivfWhr Rm, N.V. 10014. CAhStMec 
A reetb Curriratu 456, CwHga 1366. TO 6?mTO ® 4^ ****** Trinfc 

3M7696. 238403, Tlt (212 489 8300. 

Cato; PA Bn 284(L TO 751482. hth- enirfirwriaaiMhifliufet filftHl 


■asiHdnngn 7. TOuc 3Z609L TO 
TekJffc Eftbffcf 8th Hest, Mk 


AMERICAN 

EXECUTIVES 

-seek-luxury furnished flats or 
bouses up to £350 per week. 
Usual fees required. 
Phillips Kay and Lewis 
01-839 2245 


QUEEN’S QUAY, . 
LONDON ECA 

Several. 1 Bed Flats for sale In this 
superbly located modem city block. 
Resident . .porter, riverside roof 
terrace, basement storage rooms. 

95 Year Leases - From £42,500 
FRANK HARRIS & CO. 

6 Dry den Street, Cevwrt Cardan 
London WG2 - Tel: 01-838 6338 


3W7OT6. 238403. TO tZlB 489 8300. 

Cafre; PA Bw 3Wft to 751CSZ. FiHf: EetorWaadJUr vthi aaCodn PAfUm 

WMk p Swdfc i F reterick -SL, BriAn 2. Tete U Lawn, 168 SedelS^rioHMiCedtt 
29414. TO fedfe 683378. OL Trice 220044. TO 297 2000. 

Efehmgfai OOetM erf toutUm 37 Swipe We totintktr. Be Brasee 49.TO>gllj632, 
TO*. E82 am. TOuo 724«rSfe« TO Centra DCP 20090, Be ri« Jntira W MLTd: 
Q314Q6 4220. ANMMqg TO 093^226 4199. 263 8845. Trine c/a KMtsn, 

FTOlBtaffc Qfltortri fVurif n.ffii 7TM. Tete Rum: EHMri Vfa dldta Mnedt SSL Tttej 
g6«2. TO 7599 357. Adwrtfchg 6U0X2. TO 678 3314. 

54. Tvta; 4163.93. TO 75980. Tlvi liSerii UteW Svemis PmHsHL 

Wang tow 30a ««a- OmR*** 5 taTOTOwnTISta: U6ATO WukI 
CmtnL ™* X: 352M *“• ™ TOT* ***** 8W r*". IC heri ** *** 

Mn^etWPABK2L28.Tiks:B4257 , .TO ^^ "paS^TO^ WI rot SSSjc 
08-7545. Wen hen BMMlag, MB UcHkado, 

Leeds: TO w ttj TO P wue e ul Heeoe, The OdfudHou Tite 327304i TO 295 43S&-- 
ftaarwr. Tak CSX «4969. Wirthefnn- QBfmkt 914 (MM Pm 

For Share Index and Business News Summary, Telephone 246 8026 
(umber, preceded by the appropriate ana cade vaOd far London, 
Bbmtegham, Uwpeol and Manchester}. 

AS sdrertHet k aejeet to the pUbfistur's ament terms nd oondMon^ eapla of obkh an snitaUe H 

ngaest- 


Xn*n BuUtnp. 14J0 UtMtarah. 
Cldiu d e to . TOm aHDC TO 29S4Q5a 
WnUeeta OOrnkf 9M *«■"*.»*« 




posed construction of a gas 
terminal in Nova Scotia to store 
liquefied gas shipped by ice- 
breaking ING tankers from the 
Arctic. Tins would form past 
of a $2bn Arctic pilot project 
designed to bring gas from Mel- 
ville Island to Lower Canada. 

Uncertainties, however, 
abound about these two “ mega- 
projects.” ; Dome itself has some 
severe financial problems after 
r unning op debts of more than 
$5bn following its acquisition' of 
the Hudson's Bay Oil and Gas 
Company. 

If Nova Soctia has striven to 
be accommodating with the 
Federal Government, New- 
foundland has continued to dig 
in its heels. Since the discovery 
of the Hibernia OU Field in the 
Grand Baltics, relations between 
Ottawa and Newfoundland have 
hit all timg lows. Unlike Nova 
Scotia, Mr Brian Pedcford, the 
abrasive, outspoken Newfound- 
land premier, has refused to 
compromise on the issue of 
ownership of the province's off- 
shore resources. 

Only last month, Mr Pickford 
called provincial elections two 
years before the end of his term 
to strengthen his position in his 
dispute with Ottawa oyer con- 
trol of the province’s offshore 
resources. The election on April 
6 turned into a resounding 


COMPANY NOTICES 


ATLANTIC 
0 - 


oPc S A ST 


' Bob Hutchison - 

triumph for the Premier whose 
Progressive Conservative Party 
won 44 of the 52 seats in the 
provincial legislature represent- 
ing a gain of 10 seats for his- 
party.. 

The sharp contrast in the two 
Atlantic provinces' approach to 
the offshore issue reflects, in a 
sense, Newfoundland's stronger 
overall position. Nova Scotia’s 
gas resources are generally 
rated to be far less valuable 
than Newfoundland’s oil As 
one American oilman put it: 
“In Peckford’s case you. are 
talking about a really major 
find of olL Nova Scotia has gas 
and there is a surplus of gas 
in Canada right now ” 

Indeed, Newfoundland has so 
far turned up the biggest hit 
in Atlantic Canada’s search for. 
offshore oil and gas. Mr Neff. 
Windsor, Newfoundland’s 
Minister of Development, says 
four weHs in the giant Hibernia 
oHfleid off the Newfoundland 
coast have now established the 
existence of 1.8bn barrels of 
off and' two trillion (million 
million) cubic ft of natural gas. 

But the American-owned 
companies involved in New- 
foundland, including Mobil, 
Gulf Canada and Chevron 
Standard, have aQ insisted they 
cannot go ahead with develop-, 
meat until the national' and pro- ■ 


vindnl governments In® *## - 
their differences. This does 
not seem to concent Mr Peck- 
ford; * His position is that am. 

- trot of the province's - offfiW 

resources ie far Bwre'hnbortant 
than accelerated development 
Some oilmen also regard Mr 
Peckford’s posture-. »- a -c^eo- . 
laied.risk. 

. . But both Nova. SCotii and 
Newfoundland appear % sham 
a common approach to Ottawa’s 
energy policies. WHfe theyfo 
not dispute- die Federal Govern, 
ment’s design to gb^ Canada 
greater control of its resources 
and economic .future: (“you 
won’t find many Canadians dis- 
agreeing with CanacUanisatitm.' 1 
one provincial government 
official In Nova Beotia- said) 
they do object to the method 
Ottawa has adopted, to imple. 
meat its. policies. - 
These -policies, i tt the. case of 
the American .off compani es . . 
have increased suspicions that 
the Government .is basically 
seeking, in lhe L wofds at one 
U5. -oilman,’ “ to push us ont 
completely and take-over the 
whole darn thing.”-' ' But he 
added that the - Government at 
the same time wanted the 
majors to continue to invest 
capital in exifloratiem, train the 
Canadian oil Industryk and take 
many of the risks. 

The Atlantic provinces, on 
■the other-hand, have Continued 
to- be very open to foxtijn 
investment. As Mr Nell Wind 
. sor, the Newfoundland Develop- 
ment Minister, told - Ufi. 
botiziessmen in Chicago: 14 We 
are not paranoid about exploit- 
ing this resource and welcome 
US. investment as tills is an 
international discovery” Simi- 
lar sentiments have been 
expressed by Nova Scotia 
-which, as Development Deputy 
' Minister James McNiven says, 
-Recogzuses that forrign 
investment has played a big role 
in the development of the pro- 
vince, for more foe that. matter 
than Canadian investment" 
Bdf- the. Federal Government 
has in recent ' months been 
adopting a more -accommodating 
approach to -the foreign off 
companies. Committed to 
massive investments in the 
energy 1 - sector «s the key 
stimulant for the -country's 
future growth, the recent 
dramatic changes in* the oil 
business have dearly worried 
tiie Canadian. - Government. 
“ Yes, they are a bit scared,” 
remarked : ah . ^American oil 
executive. :*f But unfortunately 
notiyet Scared, taaough.” 


AUCTIONS 



GMAC or CANADA, LIMITED 
AND 

GMAC OF CANADA. LIMITED 
CORPORATION N.V. 

NOTICE 15 GIVEN HEREBY to .-hoWsrs 
of notet bsom by the above companies 
that the Annual Report and Aeoovncs of 
such companies and of General Motors 
Acentmcc C ora a ra Mon hen been pub- 
lished and lodges with Extol Statistical 
Sendees Limited. Copies of such reports 
miv be obtained upon written reouesC to 
GMAC IU-K.) LM-. P.O. Bov JI„ Liftoff 
LU2 OS2. Bedfordshire, Enstand. AMW>- 
tton: Am Manager. 


BANKRUPTCY AUCTION 

BY OEdER OF THE UNITED STfiTffi MKKHOPTCY COtlTffr 
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Financial Times Wednesday April 21 1982 


9 


UK NEWS 


Whitney 

to become 
director 
general 
of DBA 

By Bedrida Nenk 

Hr John WWtney, manag- 
ing director of Capital Radio, 
has been appointed the next 
Director General of the 
Independent Broadcasting 
Authority. 

He will succeed Sir Brian 
Young, who retires tn Novem- 
ber at the age of 60. ■ 

Mr Whitney, 51, has been 
managing director of Capital 
Radio since 1973. He made his 
mark In broadcasting with the 
formation of Ross Radio Pro- 
ductions, producing radio 
-programmes for Radio 
Luxembourg and other over- 
seas commercial stations. 
Since 1980 he has been direc- 
tor of Consolidated Produc- 
tions. 

Lord Thomson of Momfieth, 
...chairman of the XBA svid 
yesterday: “ We had a strong 
field of candidates. 

“Our final choice lay with 
John Whitney:' he is one of 
the leading personalities pro- 
duced by the independent 
system of bf\a&£$tiiig and 
one of the creators of local 
radio in this country.” 

Toy group change 

Hr Bin Everard has been 
appointed managing director 
and chairman designate of 
Berwick Thnpo, the troubled 
t~-' manufacturing group. 

Hr John Oakley, the group’s 
•'■"irnan, will resign at the 
-ral meeting in June, a 
■ *?r earlier than originally 
"’’'"Tued. to pursue his private 
/‘"rests. 

Berwick Timpe made a pre- 
*-T of £467,217 for 1981 
m sales of £l&23m as the 
'“/noy" met poor trading 
*'«-dtt«nns and the pressure 
from imports. 

£15m ’phone order 

BRITISH TELECOM has 
ordered 500,000 electronic 
push-button telephones, worth 
about f 15m, from the informa- 
tion terminals division of 
Standard Telephones and 
Cables. The telephones will be 
produced at STCs Moukstown 
factory.' near Belfast It will 
mean 50 extra jobs. 

Housing ‘revival’ 

A MARKED revival In private 
sector house building during 
1982 Is being forecast by the 
Rational . House-Building 

Council. 

The council expects starts 
on 135,000 homes this year, 
against 116,500 in 1981. If this 
projection is fulfilled, it will 
mean the best year for private 
house building since 1979. 

EVK in titanium move 

IHI, the Birmingham-based 
metals and engineering 
group, yesterday said that 
It had been discussing the 
possibility of cooperating In 
the' manufacture of wrought 
titanium products with the 
Cnbot Corporation, of Boston, 
Massachusetts, a leading ILS. 
producer of strategic metals. 


ACC postpones Gill payment decision again 


BY JOHN MOORE, CFTY CORRESPONDENT 


VOTING SHAREHOLDERS of 
Associated Communications Cor- 
poration (AGC), Lord Grade's 
entertainments empire, yester- 
day postponed giving their 
approval to a record golden* 
handshake of £560,000 to Mr 
Jack Gill, the group’s former 
managing director. 

Ttie decision to postpone 
further consideration of the 
payment was taken behind 
closed doors at -a meeting which 
only the voting shareholders of 


ACC were allowed to attend. 
Non-voting shareholders, includ- 
ing the Post Office Staff Soper- 
mnuation Fund, winch is seek- 
ing to block the payment to 
Mr GiH through litigation, were 
excluded. 

The decision to exclude the 
non-voting shareholders from 
the meeting sparked a major 
row between Mr Ralph Qirar- 
tano, chief executive of the 
fund, and Mr Robert Holmes a 
Court, the chairman of ACC 
whose business interests are 


taking over the entertainments 
group. 

As the row simmered be- 
tween the Post Office Fund and 
ACC. Sir David Napley, solici- 
tor for Mr Gill, declared yester- 
day that he was now considering 
further legal action following 
the latest adjournment — the 
fifth this yearJ-of th’e meeting 
to consider the payment to Mr 
Gill 

“I personally take the view 
that this is a breach,” said Sir 
David, referring to the latest 


adjournment, “ but the situation 
is not without its difficulties 
and we will have to consider 
the legal position carefully.'' 

The decision, by seven votes 
to one, to adjourn the meeting 
means that the question of Mr 
Gill's compensation will not be 
considered until either ACC's 
annual general meeting, set for 
September 16. or four weeks 
after the decision of the courts 
in respect of the litigation 
launched by the Post Office 
Fund to block the payment.' 


whichever is earlier. 

Late yesterday. Mr Holmes a 
Court unveiled a boardroom re- 
shuffle. Out of ACC's boardroom, 
go Lord Grade, who built up the 
company, Mr Ellis Birk and Mr 
Norman Collins. 

Mr Holmes A Court confirmed 
himself as chairman. The rest 
of the board will consist of Sir 
Michael Clapham, Mr Michael 
Edwards, Mr George Preston. 
Mr Burt Reuter and Lord 
Wlndlesham. The post of chief 
executive is U> be abolished and 


Mr Reuter, one of Mr Holmes 
& Court's aides. Is appointed 
group managing director. 

As executive board, chaired 
by Mr Holmes A la Court and 
responsible for day-to-day man- 
agement, will, consist of Mr 
Louis Benjamin, until yesterday 
deputy chairman of ACC. Mr 
Antony Lucas, Mr L. S. Michael, 
Mr Reuter, and Mr Derek 
Williams. 

Lord Grade remains executive 
deputy chairman of 1TC Enter- 
tainments Inc., 


BACS opens £6m centre 
for clearing bank transfers 

BY WILLIAM HALL, BANKING CORRESPONDENT 


:■ jivy;/ irw 


A SECOND automated bank- 
clearing . centre has been 
opened, at a cost of £6m. 

The centre, in Dunstable, was 
opened by Bankers Automated 
Clearing Services (BACS), 
which operates the world's 
largest automated clearing 
house, in North London. 

BACS is owned, by Brkain's 
clearing banks, and is one of the 
pioneers ' of . electronic funds 
transfer in the UK It processes 
transactions' " through powerful 
computers, which eliminate 
paperwork in the traditional 
branch banking system. 

BACS has become increas- 
ingly important as the big banks 
work to contain the costs of 
mounting paperwork. 

BACS processed 40.4m items 
in 1969, rising to 484.8m last 
year. The work represents 
18 per cent of the banking 
transactions cleared through the 
British banking system. Volume 
Is forecast to rise to 1.8bn items 
by 1989, or 40 per cent of total ■ 
inter-bank transactions. 

The Dunstable unlit will 
initially work to ensure con- 
tinuity of BACSTs current 
operations, but it should even- 


tually become a f ully-operational 
processing centre. It has a 
computer suite of 15,000 sq ft, 
which houses an 1CL 2966 main- 
frame computer. 

BACS was formed in 1969 
and has assumed an important 
role in accelerating the progress 
towards the cashless society 
through electronic funds trans- 
fer. . 

It is playing a leading role in 
the banks' current campaign for 
non-cash payment of wages. It 
has been able, since last month, 
to accept payment instructions 
on diskettes and cassettes as 
well as conventional computer 
tape. Next year it will be pos- 
sible for data to be - S 2 $sed 
directly to telecommunication 
links. 

Standing orders represent the 
biggest single element of its 
business 

• A committee has been set up 
to help meet more efficiently 
and economically the comput- 
ing needs of the Health Service. 

Mr Norman Fowler, Social 
Services Secretary, has estab- 
lished the NHS Computer 
Policy Committee, to be chaired 
by Mr Gordon Roberts RHA. 



A NEW technology centre 
giving small businesses work- 
in® emerience o: micro- 
electronics and business 
technology is to be opened In 
Hackney, East London where 
about half the businesses 
employ fewer than 10 people. 

The venture, to be housed 
in a C si. ft lamer car 
salesroom and offices in 
Shoreditch High Street, is 
being, promoted by Hackney 


borough council with financial 
support mainly from the 
Government's Urban Pro- 
gramme. 

. The City Technology 
Centre, ran by Citytec Hack- 
ney Ltd, has been set up by 
Mr Geoff Walker (above), a 
senior consultant with I CL, 
the national computer com- 
pany. He has been seconded 
for a year as project co- 
ordinator. 


Short new technology 
courses will be offered to 
local businessmen and in the 
same building an operation 
called the Business Tech- 
nology Bureau will offer a 
battery of micro-computers 
for hire on an hourly basis. 

Mr Walker said: “The inten- 
tion is that employers gain 
working experience on the 
computers and then decide 
whether or not they would 


Hugh Rout ledge 


like to purchase one.” There 
is no obligation to do so and 
computer time will be aival- 
able to any local company 
which wants it. 

Mr Walker said: “Clients 
coming in will be in the situa- 
tion of real business usage 
which is different from other 
micro-systems demonstration 
centres where software is on 
show.” 


BNOC heads group in North Sea oil find 


BY RAY DAFTER,. ENERGY EDITOR 


A GROUP of international oil 
companies, led by British 
National Oil Corporation, has 
successfully drilled for oil dose 
to the Thistle Field in the North 
Sea. 

The find improves chances of 
an area north of Thistle being 
developed as a new complex of 
fields. 

BNOC, the operators, said 
yesterday that "good shows” 
of oil were located in the main 
target area of reservoir rock, 
which will be tested later this 
year. 


Meanwhile the well in block 
211/18—120 miles east of the 
Shetlands — has been tempo- 
rarily plugged. 

Tests conducted in a secon- 
dary target — a section of 
Lower Jurassic Statfjord sand- 
stone rock between 12,300 ft and 
12,400 ft deep — yielded high 
quality, light oil with a specific 
gravity of 41 degrees API 
(American Petroleum Institute) 
flowing at a rate of 1,660 
barrels a day. 

The well was .located less 
than a' mile south-east of the 


main target well. The latest 
well, designated 221/18 —24. 
was drilled to test a separate 
oil accumulation. According to 
stockbrokers Wood, Mackenzie, 
recoverable reserves in the area 
could be between 100m and 
150m barrels. 

BNOC also announced that 
It had awarded an engineering 
design contract for the second 
production platform for the in- 
shore Beatrice oil fields. 

The order, won by Brown and 
Root, followed the completion 
of preliminary engineering 


work carried out by J. Ray 
McDermitL 

The Beatrice Field, in Moray 
Firth, was commissioned last 
September. It currently yields 
30,000 barrels a day. 

Ivo Dawnay adds: Mr Clive 
Jenkins, general secretary of the 
Association of Scientific, Tech- 
nical and Managerial Staffs, 
yesterday accused the Govern- 
ment of “treason” over its 
plans to sell off North Sea oil 
assets. 

Speaking . at the Scottish 
Trade Union Congress in Perth, 


he said that the British National 
Oil Corporation had acted as a 
buffer against EEC legislation, 
allowing oil to be landed in any 
Community country. 

“ I now see a future in which 
yon have foreign investors in 
the new so-called Britoil" he 
said. 

“You can see a course of 
action in which American 
investors with interests in the 
private company can land oil 
wherever the tax regime is most 
suitable and the greatest profits 
can be made.” 


Esso chairman attacks the Government’s offshore taxation policies 


BY RAY DAFTER, EN0K3Y EDITOR 


MR ARCHIE FORSTER, chair- 
man and chief executive of Esso 
Petroleum, one of the major oil 
and gas producers in the North 
Sea, has vehemently attacked 
offshore taxation policies. 

The new revenue-based 
Supplemeatary Petroleum Duty 
was the “major adverse contri- 
butor” to Esso’s .worsened finan- 
cial performance last year, he 
writes in the annual report. 

Last year Esso, UK subsidiary 
of Exxon Corporation, had 


£2 05m net profit against £2 09m 
in 1980. • Its return on capital 
fell from 10 per cent in 1980 
to 7.9 per cent last year. 

Its 1981 North Sea tax was 
□early £30 0m, though only £23m 
in the previous 12 months. 
Almost £200m went to the 
Supplementary Petroleum Duty 
introduced last year. 

Mr Forster said the tax raised 
the Government marginal take 
to over 90 per cent “to demon- 
strate again the lack of stability 


in the fiscal regime in our high- 
risk business.” 

It was notable that no major 
new North Sea development had 
been committed by the oil 
industry since announcement 
of the Petroleum Duty in 
November 1980. 

" Though the duty would be 
scrapped at the New Year as a 
result of measures in the March 
Budget, other parts of the tax 
package would be amended, 
leaving overall taxation level 


unchanged. 

Taxation was the main dis- 
incentive to oil and gas 
development programmes. It 
raised “critical questions about 
the ability to maintain the 
nation’s oil self-sufficiency past 
the 1980s." 

Incentives to develop small 
fields remained inadequate; 
deeper water frontier areas had 
been made unattractive. 

Last year Esso invested ■ a 
record £523m in the UK, £411m 


on exploration and production. 
The company accounted for 
about 10 per cent of total UK 
offshore oil production and 13 
per cent of its gas output. 

Mr Forster said Esso results 
were also hit by competitive 
conditions in oil marketing and 
refining; inflation; a 7 per cent 
cut in demand for oil products 
compared with 1980; and delays 
in recovering frequent crude oil 
cost increases as the pound fell 
against the U.S. dollar. 


Insurance men 
admit fraud 

By John Moore, City 
Correspondent 

TWO INSURANCE specialists 
in the U.S. have pleaded guilty 
to four Grand Jury charges 
covering their role in ? fraud 
of more than 51m of the 
-Lloyd’s of London failed Sasse 
underwriting syndicate. 

Mr John Goepfert and Mr 
Allan Assael, both New Jersey 
residents, have each pleaded 
guilty to one conspiracy to 
defraud charge, two of wire 
fraud, and one of mail fraud, 
according to Ms Betty Santan- 
gelo, the assistant U.S. attorney 
in charge of the case. 

Mr Richard Mamarella, who 
was indicted with them last 
May, has pleaded guilty to three 
charges of perjury. 

A fourth man, Mr Dennis 
Harrison, has denied the 
charges against him and will go 
to trial on May 3. 

None of the men will be 
sentenced until after Mr Harri- 
son's trial. Mr Goepfert and Mr 
Assael face a maximum sen- 
tence of 20 years each in prison 
and a $13,000 (£7,386) fine. 

The underwriting syndicate 
at Lloyd’s, formerly headed by 
Mr Frederick Sasse. crashed 
with losses of more than 521m 
with losses largely on North 
American fire business. 


Leading 
critic of 
Sizewell B 
satisfied 
on safety 

By David Fishlock, Science Edit 

THE GOVERNMENT has c- 
vinced its most eminent cri 
that the steel pressure ves 

for the proposed Sizewell 

nuclear station can be made a 
tested to adequate standards 
public safety. 

Sir Alan Cottrell. Master 
Jesus College. Cambridge, a 
a former chief scientific adw 
to the Government, says i 
Government’s advisers 
pressure vessel safely ha 
settled bis doubts. 

After the nuclear accident 
a pressurised water reactor 
Three Mile Island in 1979, : 
Alan wrote to the Pr:: 
Minister expressing gr.i 
doubts about government pir 
for building PWRs in Brita:*, 
His doubts centred on the 
tegrity of the £lDm. 435-ton 
steel pressure vessel whi 
envelops the nuclear fuel, a 
■whether inspection lechniqi 
could be guaranteed to find a 
flaw in the steel that might gr 
to a dangerous size during :■ 
life of the reactor. 

Sir Aian. an advocate f 
nuclear power, was never! licit 
seen by opponents of the Si: 
well B project as a potent, 
witness for the opposition's ca- 
But correspondence betwe 
Sir Alan and Dr Waller M: 
shall, chairman of the t 
Atomic Energy Authority, mak 
it plain that, at least in the ca 
of the pressure vessel, ! 
former critic is satisfied. 

The letters accompany t 
latest report from a study grrr. 
on PWR pressure ves? 
integrity, under the chainna 
ship of Dr Marshall. 

The report shows that S 
Alan’s previous doubts abo 
the performance of the stands - 
U.S. ultrasonic inspects 
method in locating flaws of 
significant size with a hi; 
degree of probability were ful 
justified. 

In a major intemation 
exercise organised by the OEC 
cracks as long as two inches hi 
been missed by inspects 
learns. Sir Alan said yesterdn 
But a smaller exerri; 
initiated by Britain, involvit 
top inspection teams in the UJ 
France and West German 
using newer inspection tec 
niques, demonstrated that t) 
smallest flaws of any significant 
could be discovered with a vei 
high degree of probability. 

As a result, the Marshal stuc 
group estimates the probabili 
of failure of a pressure vess 
of the type that will be ordcrc 
fore Sizewell B at less than or 
in a million per year. 

In a letter to Dr Marshall r 
February' 15, Sir Alan said tt 
new report on pressure vess' 
integrity “ has gone mut 
farther than its predecessor an 
in that direction which resolve 
ray previous doubts about assu 
ing the integrity of a PW 
pressure vessel." 

Sir Alan congratulates th 
study group on a “ first clas 
very thorough and objective 
report. He says he welcome 
the new report for the way i 
which it has identified and or 
ciselv defined the conditior 
needed to ensure high integrit; 
Safety of nuclear pressure 
vessels. Page 27 


How to cut fleet fuel costs 
even lower titan All Star can. 


Find some other way your people 
can wheel 
themselves 
- and/or your 
products or 
services - 
around. 

But, If this Is 
Impracticable, 
and you’re stuck 
with paying for ■ 
fuel, All Star Petrol ,, 

Cards really are the best 

way to cut the cost of it?: 

Any All Star client wod 

say the same. It stands to 

In fad, several reasons. 

1. You carft pay less than the 
cash price on the pump. And that 
is what an All Star Card entitles 
you to. No surcharges. And two 
weeks' freecredit before settlement . 
to boot 

Z You couldn't if you tried, reduce your _ _ 
keeping costs, fuel-wise, any more than All w 

detailed weekly statements make possible. 

Especially as the All Star system eliminates casfr * 

floats for good. 

a You couldn't stamp out petty fiddles (personal 

goodies charged as petrol, for instance) more 

effectively than with All-Star Cards Because the 
Card entitles its holder to petrol, DERV or LPG and 



4. You won’t waste any fuel (la money) looking 
for an AH Star garage - not with 4,000 of 
them spread across the country. And 
you’re even protected from “ industrial 
action” affecting deliveries by individual oil 
companies 

AH Star, 
originators of 
Running Cost 
control, have 
more experience 
inthisfieldithan 

anyone else. 
Theisystem is 
flexible to 
include, if 
required, even 
more detailed 
Ing information. Ifs the 
Wifyiext best thing to owning 
your own oil welL 

To get the facts, 
cut out the coupon : Or use 
the telephone. 


h,To AH Star Petrol Card Limited, Princes House, 
Swindon SN1 2HN. Telephone Swindon (0793) 461231. 
RoUerSxates arenton. M abort Running Cost Control, pleasa-to 


NAME. 


I 

{ postwn__ 

I 


COMPANTADDRESS. 



WMBmOFVmCLES_ 


like since the franchise is pretty hard to get (we’re 
that fussy), arid rival garages are lining up for it 


ALL-STAR 

r—r, ' ^ 

Jtfrunnrng cc^t control 


FT/21/4 




1NTKNATIONAL ' 


Move a man without his family 
and you’ll pay for it. 


Few executives work at full capacity 
when away from home and famil y. 

So, if you must move an employee 
to another part of the country - or 
abroad - the sooner you move his 
family, too, the better. 

But first, there are a few obstacles 
to overcome. 

He has a house to sell. A house 
to buy. Schools and local amenities 
to check out And, most of the ^ 
time, he’s living out of a suitcase 
- at your expense - in a place he 
barely knows. 

These wouldn’t be 
obstacles if his company 
knew about Homequity 
Relocation - without 
whom some of the 
biggest businesses in 
the UK won’t move 
anyone. You see, when 
Homequity get down to 
work, so does your. man. 

Why? 

Because Homequity will take over the 
sale of his present house at an agreed 
market price and immediately release the 
equity in the house. So that he won’t have 
to wait months trying to find a buyer, but 
can get on with the search for his new home right 
away, knowing exactly how much cash he has 
available. 

, Because Homequity will undertake a detailed 
property search and arrange viewing schedules. So 
that he and his family can find — quickly yet 
unhurriedly - somewhere they’ll feel at home. 

Because Homequity will also provide guidance 



and obtain valuable information about 
educational and recreational facilities. 
So that all his questions about the 
location, however specific or 
personal, can be answered with 
speed and accuracy. 

Together,.these services can cut 
relocation time by months. And, cut 
costs - bridging loan interest, 
travelling and hotel bills, 
included - by thousands. 
Using Homequity does more 
than sugar the moving pilL 
It considerably reduces the 
pill itselfl 


Homequity Relocation is 
explained in far greater 
detail in a brochure 
entitled “Management 
on the Move.” For your 
copy, simply use the coupon. 
Or the telephone. 


To Homequity Relocation Limited, 
Venture House, 37-43 Blagravc Street 
Reading; Berkshire RGl 1PZ. 
Telephone 0734 589011. 

“Management tin- the Move” please. 


1 

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Company. 
| Address. 

1=-=-. 


— I 
II 


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FT/21/4 


Homequity 
Relocation Ltd. 


f£) INTERNATIONAL 

t ' naTMwcwM ii*a<wuaaxt 


iWWABamiMVMfaocniN 







10 


Kmaiic 


udi Trnica Wednesday April 21 isms 


UK NEWS 


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WOODBINES were five a penny 
before the war, and in those 
distant days a bottle of Scotch 
bosf 12s'- 6d— the . equivalent' of." 
82 |el Aider people .sometimes 
cite these statistics with a mix- 
ture of nostalgia and longing.- „ 
But, of course, whisky was 
finite .expensive even in those 
days and tuppences were much 
harder to come by than today. 

■' To make any sense of the 
prices, one needs to know what 
an average person was earning, 
lax rates, hours of work and 
other comparative information. 
Anyone who talked at length 
about pre-war prices without 
referring to inflation would be 
convicted of irrelevance— or of 
being a bore. 

7 Yet this -is in effect what the 
Treasury has been criticised for 
doing hi- the latest Public 
Expenditure White. Paper, 
which puts all historical and 
Future information in cash 
forms. The Treasury’s argument 
for. changing to a system of. 
planning future expenditure In 
cash is that financial discipline 
requires -programmes to he 
tailored to -the cash available. 
Otherwise the Government might . 
t>e signing blank cheques which 
Would automatically accomo- 
date higher costs resulting from . 
5Q ch things as wages and fuel 
fences. 

The main criticism of the 
Treasury’s approach is that last 
month’s White--Paper concen-. 
tyates exclusively on cash with- 
out any indication of what it will 
buy. The latest attack has come 
from the Treasury and Civil Ser-. 
rice Select Committee, which 
said on Monday that substan- 
tial changes would be needed 
to the presentation of the 
figures if Parliament were to 
have adequate information to 
follow past and future trends 
in public spending. 


GENERAL GOVERNMENT 
HXEB INVESTMENT 



Max Wilkinson looks into criticisms of ftte 
Government's spending proposals 


■ Mr Edward du Gann, -the com- 
mittee's chairman described the 
information now provided for. 
MFs as “ woefully inadequate,** 
and it is clear that a strong 
'lobby is building up for the 
presentation of the figures in 
some sort of “ real ” or inflation 
adjusted terms. 

The committee showed one 
way of doing -.this by convert- 
ing some of the White Paper 
figures ftom: the relatively- 
meaningless cash terms to an 
inflation-adjusted “ cost series.” 
It did this by adjusting each 
cash figure in proportion to the . 
year's past or . expected in-, 
flation rate, as measured by 
the GDP deflator, and expressing 
the result as an index. 

The graph .shows how 
superior are the Select Com- 
mittee>_figures for interpreting 
trends" From the Treasury’s 
information, it appears that 
capital investment by nation- 
alised industries is expected "to 
double between 1976-77 and 
1982-63. But" Unless the in- 


flation rate for the period is 
known, then the information is 
useless. . 

The cost series gives the more 
- interesting information that in 
“real” terms investment fell 
to a low point in 1986-81 and 
■ is expected to be restored this 
year (1082-83). 

The dilemma facing, the 
Treasury is that if it should go 
back to publication of expendi- 
ture projections in some form 
of “ real ’’ terms, it might 
undermine the major effort it 
has made to educate spending 
departments in the constraint^ 
of the new cash system. - • - 

On this argument, it is im- 
portant that departments tailor 
their activities to the. cash 
available, as do individuals or 
'companies. 

Under the old “volume” 
system up to 1975, departments 
could plan for an agreed 
number of schools, hospitals or 
battleships and, in effect, send, 
the bill to the Treasury after 
they" were built. 


. However, to : pro ject . even a 
mod era t ely-pla usible cash 

. figure for spending, the 
Treasury has to take a view 
about. the likely course pi in- 
flation. ' 

The inflation assumptions in 
' the current White Paper are 
confusing 1 and somewhat con- 
tra diet biy, but it is possible to 
produce the most up-to-date 
forecast and to adjust ffce pro- 
jections accordingly. This is 
what the Select Committee has 
done. - . 

Senior Treasury officials are 
not unsympathetic to ' this 
approach, which Is defined as 
" expenditure in cost terms." It 
is highly probable that future 
White Papers will give at least 
the main figures in this form. 
However, this will not' satisfy 
some -critics 

There is, therefore, a 
heirareby of ways of looking 
at public spending, each getting 
slightly closer to the end pro- 
duct. It includes: 

Casta: This is the amount of 
money in nominal terms avail- 
's We ' for a progra mm e — for 
example hospital building. 

Cost: This Is cash, adjusted for 
the average rate of inflation for 
the whole economy. If repre- 
sents the real resources being 
put Into a programme, but does 
not reflect accurately what will 
result 

Volumci- This ..ls_ a. figure 
expressed- -in- -constant -prices,-] 
taking account of the special 
inflation rates expected within 
.a particular spending pro- 
gramme. It reprdesents approxi- 
mately the extent of a pro- 
gramme. 

Output measures: These are 
indices which attempt to 
measure the. service delivered 
•' to the public! These measures 
are difficult to devise jrad are 
relatively unrefined. ' 


British Air Ferries shows 
pre-tax profit of £0.5m 

BT MICHAEL DONNE, AEROSPACE CORRESPOMOB^T 

BRITISH- -Air— Ferries, the Air port, 

Southend-based airline of the a new company, Dragon Air- 
Keegan Group, earned a net pre- craft, is to make a -range of 
tax profit of £500,000 in the year Micro-Light -aircraft Prototypes 
to December 31- I981.with BAF-.. are ---already being built- for 
Engineering earning £100,000. : demonstration and -initial pro- 


Mr Mike Keegan, the group’s 
chairman., said, both, companies 
expanded during 1 19S1 and - 
further growth is planned this 
year. 

British Air Ferries purchased 
the remaining seven British Air- 
ways' Viscount turbo-prop air- 
liners. bringing its own fleet to 
32. while BAF Engineering 
acquired the British Airways' 
maintenance base at Cardiff 


duction run or .1,000 aircraft is 

planned. • 

. :Mr Keegan says that in the 
current year, the group will 
expand in the Fir East_ The 
expansion is carefully thought 
out: we are - well diversified 
across various aspects of avia- 
tion, and have establishments in 
six separate countries, which 
Insulates us from any single 
economy.’’ 


Debenham computer link 
Rims to cut fuel costs 


BY MAURICE 5AMUELSON 

TH£ .DEBENHAM GROUP. -Df_ 


Invitation to the 
Shareholders of 


COPENHAGEN HANHEIiSBANK ATS 

(Aktieseiskabet Kjobenhavns Handelsbank) 

to subscribe for 
Nominal Kr. 85,000,000 
in New Shares 

- At tbe Annual GeneralMeeting xjf Sharebpldersoftbp. 

Bank on March 8, 1982, it was resolved that the 
Bank's; share capital shouTd“be increased from Krl ' “ 

850.000. 000 to Kr. 935,000,000 through a Kr. _ -. 

85.000. 000 rights issue priced at 103. 

The new shares shall carry- full dividend for the" 

1 982 financial yea r, and in every respeettenk pari pas- 
su with existing shares:The newshares shall be nego- 
tiable instruments, and their pre-emptive subscrip- - 
tion rights shall in no way.be restricted as regards 
future share capital increases. 

The -shareholders of the Bank will be entitled to 
subscribe Kr. 100 new shares at 103% on each hold- 
ing of Kr. 1,000. 

Sha reholders who wish to subscribe must surren- 
der Coupon No. 11. Shareholders who do not make 
use of their subscription right, orwhose entitlement is 
insufficient, may sell Coupon No. 11, and the buyer 
may use this rightto subscribe newshares. Sharehol- 
ders who do not wish to make full use of their sub- 
scription rights may have the coupon exchanged. 
Upon expiry of the subscription period Coupon Nall 
becomes invalid. 

IfthefuHamountdfthesharecapitalincreaseisnot 
subscribed for by the end of the subscription period, 
the unsubscribed capital is fully underwritten. 
Accordingly, the subscription is binding. 

Subscription for new shares will take place 
through the Head Office of the Bankwhich the Board 
of Directors has empowered to receive payment for. . 
the suberibed amounts and to issue interim certifi- - 
cates. • 

' ' Subscriptions may also be made through any or 
the Bank's branches and subbranches. 

Copenhagen, April 19,1982 

COPENHAGEN HANDELSBANK AJ3 
' (Aktieseiskabet Kjobenhavns HandelsbankJ 


... For subscription for new shares, and p urchase/sate of sub- - 
scription rights (Coupon No. V) please applyto: . . 

Conunhagen Handefabanlc or to NJW1. RothschiW &SonslimKed 
issue Department New Issue Department 

2, Hohnens Kanal POBoxiSS 

DK-10S1 Copenhagen K. Newt^urt ■ 

nminailc St-Swfthm'slana 

^ London EC4P4DU 

from whom codes of the subscription list are obtainable. 

Rights (Coupon No.11) will not be deaftin on the London 
Stodc Exchange, but solely on the Copenhagen Stock 
Btchange-- 


theyvuiU be quoted on the London Stock Exchange. 


retail stores is installing a com- 
puter-based energy control 
system in its major outlets -in 
an effort to contain its fuel 
bills,- now running at nearly 
£5m a year. 

Equipment in stores through- 
out the country will be con- 
nected via the public telephone 
service to an office at Basing- 
stoke, which will monitor and 
adjust conditions in each store. 
•;Dsetaenhams has 68 stores .and . 
nearly 100 other buildings 
throughout Britain. It is using 
equipment supplied by Trans- 
mitt our "a ' subsidiary of BfCCr~ 
based at Ashby-de-la-Zouch, ■ 
Leicestershire. _ . . .... 

• About £100,000 is being spent 
on stores at Ipswich, Guildford, 
Reading. " Bristol, ' Cardiff, 
Swansea and Middlesborougb. 
The neregy bill at each it more 
than £75,000 a year. A further 
20 stores will be connected this 
year and the group's remain- 
ing tsores will, be linked in 
1983. ; 

Mr Ken Bishop, Debenham’s 
managing director, said yester- 
day the investment was based 
on the assumption that energy- 
costs would rise faster than 
inflation in the next decade and 
that energy prices would again 
be under pressure once the 
recession was over. 


_ !Hi you can_.sa.ve energy in 
volume today you’ll get a better 
reward than out of other items 
of savings," he said. 

The entire system's central 
control is at the Basingstoke 
office of WeJsmere, the separate 
energy management company 
set up by the Debenham Group. 

The Transmitton system. 
Micropower 2000, - consists of a 
central keyboard, printer and 
visual' display unit, linked by 
the public STD telephone net- 
work to computer units in- 
Debenham stores: - 
- The units in the -stores cany 
out the day-to-day energy man- 
agement^ and. monitoring inde- 
pendently of the central station. 

Debenham’ predicts it WUT 
save between 10 and 20 per- 
cerifon energy at each store . . . 

Transmitton claims this - is 
the first successful scheme on 
this scale in the UK although 
one other large retail chain has 
tried to instal a central system 
controlling energy use. 

Transmitton won the Dehen- 
hams contract in the face of 
U.S. competition -and is one of 
the fastest-growing companies 
in the BICC Group. Its yearly 
turnover has risen from £Jm 
in 1976. when it was acquired 
by BICCf. to about £7m to £Sm 
this year. 


Textile chief 
warns on 
threat to 
30,000 jobs 

By Belinda Nenk \ 

A FURTHER 30.000 jo"bs could 
be lost in Britain’s ailing textile 
industry because of the inade- 
quate response of the Govern- 
ment and the. EEC .over import 
controls, warns the British 
Textile Confederation. 

Mr Russell Snath, chairman, 
writing in the Confederation’s 
annual report; criticises the 
Government and the EEC in 
their overall response ■ to the 
industry’s representations, 
although he says both bodies 
have been positive in other 
respects. • ' 

Employment in the textile- 
industry has continued to Call 
heavily, from 384,000 in 
December 1980 to 3580)00 in 
December last year. Profits 
have fallen sharply and many 
companies have moved into 
loss. 

. - The major failing of . the EEC 
polity, -says Mr Smith, is the 
fact that tbe level at which 
quotas and ceilings wffl be set 
is.based oa existing restraint 
levels. 

Because these were fixed by 
reference to 1976— a boom year, 
for -imports— and have since 
been- subject to -an -annual 
growth factor, they have sub- 
stantially outpaced demand in 
some important areas, be says. 

. 41 We bare argued strongly 
that -the new restrahtts 'should 
be based on actual imports in 
1980. The failure of -the Govern- 
ment and the Community to 
accept our views on this point 
could allow a 22 per cent growth 
in imports and the loss of 30,000 
jobs in Britain, in addition to 
tbe effect of concessions else- 
where." 

The major part of the 
i restraints that will be intro- 
duced by the EEC will be under 
the Multi Fibre Arrangement, 
the international agreem en t 
which acts as a framework for 
world trade in textiles. 

EEC- officials ■ have opened- 
bilateral negotiations with 
developing countries and these 
are- due to conclude in foe 
autumn. The EEC is committed 
to withdrawing from the MFA if 
the negotiations fail to achieve 
its policy objectives. 

Other problems faced by the 
textiles industry include imports 
from Mediterranean countries, 
distortions to competition inside 
the EEC, cost pressures from 
public sector policies and con- 
straints outside the industry's 
control on its export potential. 

Mr Smith says: “There will 
certainly be opportunities for 
profitable investment in par- 
ticular parts of the industry, 
j-whatever reply the Government 
makes, to our initiatives. But 
the Government cannot stand 
coldly aside from the more 
widely spread consequences of 
nnaction.” 

• Increases in sales were 
recorded by the majority iff 
sections in the wholesale textile 
trade in February 1982 com- 
pared with February 1981, 
according to figures compiled by 
the Textile Distributors Associa- 
tion. 

The largest increase was in 
women’s knitted outerwear, 
blouses and skirts, which showed 
an increase of 41.3 per cent 


BL expects to double car sales 
on the Continent to 120,000 


BT JOHN GRIFFITHS 

BL- EXPECTS effectively to 
double its car sales this year 
on the Continent with Italy the 
leading market accounting for 
50,000 of 120,000 sates. 

Last year 'BL reported 81,000 
Continental sales. These in- 
eluded 20,000 Inoocenti Minis, 
assembled in Italy and for 
which BL provided a kit of 
running gear and other parts 
but not bodies. Thin pan of 
BL's business has now ceased. 

Continental sales in the first 
quarter of this year were 21,970 
against 16,357 in the same 
period of 1981. But with 
several new Metro models being 
introduced -this year, the 
Triumph Acclaim only just 
launched on tbe Continent and 
a diesel Rover unveiled at the 
Turin show yesterday, BL ex- 
pects sales to accelerate. 

As late as January BL Cars' 
chairman, Mr Ray Horrocks, 
had forecast 90,000 Continental 
sales this year. Now BL is 
looking for this volume from 
France with 40,000, and Italy 
alone. These two countries 
each absorbed 23,000 last year. 

Store than .65,000 sales are 


expected to be accounted for 
by Metro, for which BL has set 
B long-term sales target or 
100 000 on the Continent. 
Meanwhile, 4,000 Metros a year 
are finding their way ro other 
overseas markets, excluding the 
UJL, and total BL sales in these 
markets are expected to rise 
from 15,000 last year to 18,000 
in 1982. Jaguar sales in the 
U.S. are expected to double to 
9,000. 

The latest in the Metro range 
emerged yesterday in the form 
of a luxury Vanden Fias 
version. 

While BL does not expect to 
sell more than 10.000 of the 
■ new model in its first year— 
6.500 in the UK the remainder 
on the Continent— its launch 
lends emphasis to Sir Michael 
Edwardcs' remarks in the BL 
annual report, released, on 
Monday, about the company's 
product-led revival plans. 

Painting out that 20 nfrw 
models bad been introduced 
since October 1980, Sir Michael 
said: “ The programme will be 
accelerated throughout 1982 
with tbe announcement of a 


further 23 new models across 
cats, commercial veMdes and 
Land-over during, .the tom J& 
months.” 

Yet another Metro modd, -a : 

high-performance vehicle sport- 
ing the MG badge. - wUr be 
launched next month. At legs* 
one other is believed to be 
planned for later this year. 

The Vanden PJas mode^ with 
walnut interior, trim but whh* 
out tbe leather seats of previous 
Vanden Plus cars. Is expBcted'to 
increase overall Metro, sales by 
much less than 10JKKL taweser.. 
This is because it is expected to' 
rake sales from the prevtouriy 
top-range model, the- 1.3HLSL - 

At £4,994,- the Vanden. Has fa' 
less than £50- more -expensive 
than the 1J3HLS. Its- job Is .to 
give BL a more cleariydafloed 
competitor in the luxury shall 
hatchback market. The L*ttLS 
will he phased-out 

Substantia] tocremehteT sales 
are expected from the' UG 
version, however, as It is some 
years since BL has ' bad a 
representative In the . fast, 
growing small sports .saloon 
category. . . 


- FINANCIAL TIMES REPORTER 

LEYLAND TRUCKS plans to 
s t a r t limited production soon 
of an electric truek, based on 
its- 7.5 'gross tons diesel- 
engined Terrier model built 
at Bathgate. 

The electric version has 
been under development at 
the BL truck arm's Leyiand 
technical centre since 1979. 

Mr Peter Capon, Leyiand 
Tracks’ mana gin g directory- 
said at tiie unveiling of a pro- 
totype that it was the ” first 
fruit of a long-term develop- 
ment programme " dedicated 
to building electric vehicles. 

Leyiand says short-term 
market prospects are limited 
— possibly about 20 0 vehicles 
.p«..y | ear=7but._by the late 
1980s some 20 per cent of tbe 
5 -5-5.7 tons truck sector, or 


about 1,000 vehicles a year, 
could he electric. 

This could rise further If 
new battery developments are 
successful in significantly 
extending the avenge 50-mile 
range of current “ state of the 
-art u electric trucks. 

Then, it believes, there 
would be few applications of 
medium trucks for which an 
electric vendon would, not be 
suitable, assuming that most 
are used for short-haul 
deliveries. . 

For that reason, it also plans 
to extend the electric truck to 
cover the sector up to 9.5 tons. 
The 7.5 ton weight was chosen 
initially because this Is the 
threshold over which a heavy 


' goods vehicle driver* Ifeenee 
is required. ' .-“.7. ■ 

The prototype has ar p&y- 
load of 2^ tons. Its perform- 
ance is compatible; with a 
diesel vierSloit up to Sb mph, 
which fa reached in about 29 
' -seconds, but its top speed of 
40 mph Is considerably lower. 

There wtH -be -"minor 
-*■ changes toJBmlted production 
models as co mpa red -to the 
prototype., but Leyiand says 
that this can be built an the 
Bathgate Hue alongside diesel 
trucks without difficulty. 

• 'A similar system fa already 
-operating' at Barrier Motors’ 
Dunstable truck- plant,' where 
late last year It began build- 
ing the UK's first production 
commercials based on the 
Bodge 50 series truck. 


Independent school fees 
average £1,100 a term z 

BY MICHAEL DIXON, EDUCATION CORRESPONDENT 


FEES. .FOR boarders at .the 
be5t\kn own independent schools 
now average more than £1.100 a 
term, according to statistics 
published by the Independent 
Schools Information Service yes- 
terday . :■ - - • ' 

Day fees at the same schools 
for' older pupils— which' still 
cater mainly for boys— averages 
£643 a term. 

Corresponding charges at 
leading- - - independent - - girls' 
schools average £954 for 
boarders and £514 for day 
pupils, and at preparatory 
schools £817 for boarding ami 
£498 for day attendance. 

But individual fees range 
widely- with the highest for day 
pupils exceeding the lowest for 
boarders, said ISIS, whose sur- 
vey covers more than half 
Britain’s 2,400 independent 
schools and about three-quar- 
ters of fee-paying pupils in the 
country. --- 

Numbers of children attend- 


ing the schools covered fell by 
about 1 per cent in 1981-82 to 
about -410.000. And an increase 
in foreign pupils by 3,000. 
means that the number from 
British families . dropped by 
about "7.000 or nearly 2 per cent. 

The decline, which compares 
with -a 2.5 per cent fall in the 
total school- age population in 
Britain, was largely -in boarders. 
The result' is heavy financial 
pressure on less well known 
schools, particularly those in 
rural areas with little prospect 
of replaeing~Iosr boarders with 
day pupils. 

■Tt is surprising that numbers 
have held' up as well as they 
have done-" said Mr Tim Devlin, 
national director pf ISIS. 

. He added that the schools bad 
shown “unshaken confidence in 
the future" by increasing invest- 
ment in new . buildings add 
other improvements from 
£60-3nl iu 1980 to £75.4m last 
year," or from £145 per pupil to 
£186. 


Tm HERITABLE 
AND 

GENERALTRUST 



TbeHeritable and General 'Ihistlimitei, 
52BedteI^S<pareJLfl^^ 01-493 662L 

BanldngSeirvx^foroverlOOyears. 


INVESTMENT SERVICES 
FOR THE 
PETTOEOZENT 


Rapid transport 
system draws 
£3.5m revenue- 

By Nick Garnett, Northern 

Correspondent 

THE PROBLEMS which handi- 
capped last November’s integra- 
tion of bus services and the 
Tyne and Wear Metro light 
railway system have been over- 
come, the region’s passenger 
transport executive' said yester- 
day. 

The . entire Metro system, 
but excluding the bus opera- 
tions, attracted £3Bm in revenue 
in the first 11 months of the 
last financial year. until 
February 20, £200,000 up on 
target. 

■ Operating costs were £8-5m- 
more than £800,000 less than 
antidpated. 

This shortfall between 
revenue and costs, however,’ is 
a distorted figure, because 
although there are two stages 
Lof the Metro to be opened, the 
system is already maimed as if 
they were operational and 
attracting revenue. Tbe figures 
also reflect the cost of labour 
still involved in design and'etm* 
struct! on work. 

When the planned stages open 
rhig autumn and in tbe summer 
of next year, the PTE projects 
yearly revenue of £l2m, against 
operating costs of £15m. 

Each week 700,000 passengers 
use the Metro giving a yearly 
figure 36m-37m pa ssengers — 
more than the PTE expected. 
This partly reflects the impact 
of last November’s opening of 
the cross-river route to Gates- 
head and Heworth. 

Mr David Howard. PTE’s 
director of engineering, said 
yesterday that the concept of 
the Metro and its 1 integration 
with bus services had preyed 
right 

Bus scheduling and frequen- 
cies are stfll being adjusted to 
.overcome anomalies and im- 
prove efficiencies. The problems 
of reorganisation were com- 
pounded by unexpectedly high 
usage and points failures in the 
winter. r 

Tyne and Wear County Coun- 
j-cil- , with the PTE is carrying out 
extensions to some of the inter- 
change- car paries to cope with 
the high demand. 


London boroughs seek aid for jobless 


BY ROBIN PAULEY 

RAPIDLY-GROWING unemploy- 
ment in London, and foe 
problems toeing jobless young- 
sters and those . from ethnic 
minority, groups, is to be the 
subject of a campaign by the 
London Boroughs Association. 

London has fared better than 
the rest of the country in the 
recession but it now looks as 
though the worst effects were 
simply later arriving in foe 
rapitM and might be later to 
leave. 

Unemployment in London in 
the 12 months from December 


1980 increased at a rate hadf 
as high again as foe national 
rate. The rate of increase in 
job losses in the last quarter of 
-1981 was slowing down every- 
where except London. ... 

lbe LBA says foe plight of 
unemployed school - leavers 
under 18 in Greater London is 
worse ' than nationally. The: 
Greater London figure Tor this 
category jumped from 6,574 to 
.13,700. between December 1980 
and December 1981, arise of 108 
per cent ... 


London has 38 peer cent of 
the national total of unemployed 
people from ethnic minorities. 

. Tbe LBA bousing and works 
committee, fa arguing for more 
of Britain’s' and EEC. resources 
to be directed, towards London 
to aid employment opportuni- 
ties. : This would be done in 
conjunction with the .. Greater 
London Council and foe. Man- 
power' Services ' Commission 
which already has ' specific 
oonmuttees- covering foe London 
area. 


County councils urge poll tax 


BY ROBIN RAUljEY 

DOMESTIC RATES should be 
retained, reformed and 
supplemented by a poll tax. says 
the Association of County 
Councils (ACC) in its 
response to tbe Government’s 
Green Paper on Alternatives to: 
Domestic Rates. This view fa a 
majority ‘ one, but serious 
political divisions <m tbe ACC 
have ruled out a unanimous 

response. - 

. The association says the fact 
that the Green Paper contains 
no major, sew suggestions in- 
dicates that radical solutions are 
not available or acceptable to 
the Government 

Domestic rams should con- 
tinue because they are risible, 
easily collected and their re- 
gressive effects are limited by 
rebate. But tbe Government 
should . consider changing foe 
basis of rating to capital valua- 


tions, which should themselves 
be regularly updated. 

The association also recom- 
mends foe abolition of domestic 
rate relief and tbe introduction 
of income tax relief for rate 
payments. - 

Domestic rates should be sup- 
plemented by -a poll tax to fill, 
the gap that exists because of 
those who benefit from but do 
not contribute to local authority- 
services. Tbe amount the tax 
could raise should be limited 
because of its regressive nature, 
although . this could be 
ameliorated through rebates. 
The- association does not indi- 
cate whether central or local 
government would set the tax 
limit 

The ‘Welsh counties, which 
belong to the ACC . but are 
entitled to record their views- 
separately. indicate that they 


are opposed to a poH tax. So are 
other snhbrity.groups, including 
foe Labour Party opposition. 

The AGC is proposing * poll 
tax only as a stop-gap measure 
until., local; income-tax. UJT) 
can be Introduced. ■ - . 

#• Mr . Walter - .Gokfcmlth, 
(tire&o&general of foe Institute 
of .'.Directors, ..last ingET told 
members of the- Royal -Institute 
of Chartered Surveyors in 
Heriiel Hempstead that business- 
men. -should warn candidates in 
-May^s local council elections 
that - their, votes would go to 
those whose; parties displayed a 
dear determination to institute 
national rates- reforms to give 
commerce and Industry - some 
voice in local authority spend- 
ing plans and -limit foe taxation 
wtdfo councils could impose bn 
their industrial ratepayers.. 


Notice of Redemption. 


international Standard Electric Gnporatibn 

6% Sinking Fond Debentures Doe 1987 
NO^ CEIS I-ffiREBY G1V provisions of tbe Indenture dited as of May 15, 


Debentures of the fdlowing distinctive nu m bers has been drawn by lot for redemption on MayT5. 
1982 (the “sinking fund red em ption date”) through the operation of the Mandstoiy Stoking Fund 
-'-'visions ar 100% of the principal amount .thereof (the “redemption price"), together with accrued. 
: to the redemption date;.. -' 


COUPON DKBENTUKKS REARING THE PREFIX LETTER M 


47 1891 

48 1601 

49 2001 
51 2006 
72 gpsg 

106 2110 
109 2115 
115 2119 
143 2134 

200 2139 

201 2221 
213 2221 
532 2235 
681 2550 

1010 2593 

1012 2699 

1013 2990 
1040 3022 

1159 3044 

1160 3046 
1163 3051 
1190 3096 

1198 3096 

1199 3110 
1221 3189 
1247.3191 

1250 32.10 

1251 3258 


3288 6007 7442 

3293 6081 7443 

3294 6093 7522 
3655 6139 7520 
4009 0184 7527 

4026 6170 8126 

4027 6262 8127 
4137 6265 8190 
4245 6443 8209 
4343 6444 8213 

4552 8445 8216 

4553 6446 8296 
4619-6501 8296 

4663 6502 8405 

4664 6532 8491 
4697 6859 8555 

4814 7083 8624 

4815 7284 8625 

4826 7287 8700 

4827 7370 8776 
4834 7371 8800 
4904 7372 8983 
5111 7873 9001 
6113 7374 9030 
5114 7375 9174 

5144 7376 9204 

5145 7393 9206 
5154 7441 9207 


'9224 11848 
9267 Z18SI 
9268- 11852 
9269 11853 
9332 11855 
9401 11910 
9404 11911 
9602 11981 
9610 11982 
9675 11984 
9685 11985 
9706 120 H 
10172 12012 
20173 12014 
10215 12029 
10232 12060 
10284 12188 
10235 12169 
10241 12392 
10267 12772 
10273 12803 
10401 12950 
10405 13007 
10576 13094 
10709 13095 
10807 13155 
10854 13165 
11702 13230 


13416 

13465 

13834 

13946 

13849 

34093 

34094 
14207 
34273 
14275 

14392 

14393 
14541 
14543 
14545 
14547 
14900 
34901 
14902 
14995 
15062 
15088 

15132 

15133 
15220 

15222 

15223 
15417 


1 55 82 
10S51 
16215 
16259 
16283 
16410 
16474 
16477 
18579 
18597 
16K81 
10703 
16801 

16864 

16865 
16927 

17020 

17021 
17030 
17051 
17173 
17176 
17178 
17180 
17281 
17452 
17454 
17561 


17583 19486 
17693 19683 
17906 20027 
18001 20155 
28101 20157 
18103 20158 
18109 20191 
18183 20769 
18188 20919 
18263 20924 
18265 20925 
18267 20939 
18483 21019 
18M2 21166 
18544 21170 
18979 21228 
18981 21228 
10035 21282 
19041 21286 
19062 21396 
19197 21482 
19200 21486 
19208 21688 
19284 21684 
19321 21727 
19323 21780 
19331 21916 
19483 22095 


22098 24151 .28215 28812 SOSSl'.SMRY 
23147 '24183 28330 38884. 30810 SS106 
22149 24173 '26824 38904 80424 36188' 
22191 34307 36663 28973. 3088Z 33X9 
23480 24013 36013 28975 31010 332Q7- 
22491 24423 2S709 28977 31091 33211 
22493 S4647 .26710 28981 31095 38386 
22613 24831 20742 £8982 31098 3338? 
3261-T3488T 26884 200*5 31*49 33407 
22741 25005 30910 29255 31260 33570 
22743 250 13 87210 282*6 31260 «WTC 
22745 25065 27218 29413 31615 38903 '. 
22919 £5064 37220 39414 81680 33963 
23001 £5066 27302 29508 3105434048 
23005 25132 27304 £9510 31812 S404fi . 
28018 25136 27006 29681 82113 34X01. 
20131 26186 27314 29633 32117 34168 
28141 25*0- 27316 29836 32269 34189 - 
28271 £6384 27318 29667 32340 34192 
28282 26838 27467 £9998 3S380 S«78 - 
23335 25431 S7E04 '3003X32390 
28338 25626 27664 30089 32571,3489*. 
23510 2S87B 27782 30043 3282$ 04896 
20381 30084.32627' 


34040 26092 
24042 26136 
34050-20138 
24100 £6176 


28384 30221 32366 ^4944 
28391 80224 32868 34958 
28635 9im 32876. 34969 
28700 30082 38076 


. iimdsmtt*K3ta , -r. 

thereof (with all coupons appertaining thereto, maturing "after May 15, 1982), will bepaid’onstJri 
redemption date at Brokers’ Service* Department, 5th Floor of Gtibards, N.A., 111 WaB StrecfjNew - 
York, N.Y. 10043, at the offices of Gtibank, N.A. in Loodoh.(Gty QffioeJ/abdParis, or at the _ 
principal offices of Societe Generate de Baoque S A. in Brussels, Dresdner Bank AkrierfgeseUschaft m ‘ 
Franktort, Creditor Ittliano to Milan, Swiss Bank Corporation to Basle, mid Swiss Credit Bank end. 
Union Bank of Switzerland in Zurich, as the Company's Paying Agents. On and after said redemption . 
date, intereston said Debcmureswill cease to accrue. * '. 

' Coupons due May 15, 1982 should be detached and presented for payment in the ustal mmoeg. ; 

... International Stanoard Electric Cm p orahoo 

Bjr.CmBANK,NJL.. 

April 14, 1982 . ' upTrushse '. 


?■ 


J r 


- T 







11 


a' i-UCULLUU -Lilli t» VV cUiicouaj rlpLjj. ju ± uoi 


UK NEWS - LABOUR 


Ports face 
24-hour 
token strike 
today 

6y David Goodhart, Labour Staff 

THE MAJORITY of Britain’s 
ports were expected to be at 
a standstill today as the un- 
official National Forts Shop 
Stewards Committee stage a 
24-honr stoppage fn protest 
against proposed changes to 
the National Docks Labour 
Board. 

Mr Ritchie Pearce, chair- 
man of the unofficial body, 
said that 90 per cent of the 
ports covered by the Dock 
Labour scheme would dose, 
but last night there were 
doubts over London and 
Bristol. 

The stoppage has been 
called to coincide with the 
recalled National Dock Dele- 
gate Conference of the Trans- 
port and General Workers 
Union. 

The conference will be dls- 
' cussing the streamlining pro- 
posals of the NDLB, which 
includes the transfer of . 
medical and first aid centres 
from the Dock Labour Board 
to the individual port em- 
ployers. 

Strong support for the 
stoppage is coming from 
Liverpool, Southampton and 
HulL A delegation from 
Liverpool, led by Mr Denis 
Kelly, chairman of the Mersey 
Docks Shop Stewards’ Com- 
mittee, is attending the con- 
ference today with the threat 
of another 725 job losses 
hanging over the port. 

AU Scottish ports except 
Greenock are expected to 
join the action. 


Pay 


struggle among the trades 
unions over agreeing an 
incomes policy with the Labour 
Party emerged at the Scottish 
Trades Union Congress in Perth 
yesterday. 

Mr Sydney WeigheH, general 


deal with Labour vital, Scots TUC told Bank onion leaders 

upset by work of 
new broad left groi 


BY IYO DAWN AY, LABOUR STAFF 
THE FIRST signs of a majlr you eliminate this from your 


strategy, the British people 
won’t believe you; you won't 
deserve to be believed, and you 
won't get power.** 

Mr WeigheH was backed by 
Mr Alan Tuffin, Union of 
_ _ . . Communication Workers 
secretary of the National Union general secretary designate, who 


of Railwaymen, told delegates 
that it could not afford to duck 
the issue of achieving a firm 
deal with Labour on the future 
Of wage bargaining as part of 
the joint TUC-Labour Party's 
economic programme. 


“If that element .is decided no matter bow much we try 
by the whim of the 112 unions to ignore it no matter how 
it will not succeed,” he said. “ If 


tlve bargaining, a Labour 
Government will have to take 
on that problem." 

Both Mr WeigheH and Mr 
Tuffin were speaking on a 
composite motion condemning 
the Government’s economic 
policy and supporting the trade 
union campaign for major 
reflation, import controls, a 
programme of further 
nationalisation, and stringent 
curbs on overseas investment 

Earlier, Mr David Basnett, 
General and Municipal Workers 
Union general secretary and 
chairman of the key TUC- 
Labour Party liaison committee, 
much we slogaoise free collec- said that substantial progress 


bad now been made on agreeing to the left-leaning STUC. 


a common economic policy. But 
he added that “ doctrinal 
d>erfection " ribouJd now give 
way In the approach to a 
general election. 

The issue of incomes policy 


BY BRIAN GROOM, LABOUR STAFF 


said that a deal on wages was 
an essential part of Labour’s 
economic strategy. 

“ We have to know what 
agreement we have on the 
subject of incomes,” he said. 
“The issue will not go away. 


UCW calls for the reinstate- 
ment of the amendment were 
ruled out of order by the STUC 
general council. 

However, a motion, opposing 

. all forms of incomes policy, was 

is likely to become central to moved by the left-led Technical a BROAD left group has been 
the left-right struggle both Administrative and Supervisory f orme[ j in an attempt to radi- 
witbin the Labour Party and Section of the Amalgamated call sc the non-political 150,000 
the trades unions over the Union of Engineering Workers strong Banking Insurance and 
coming months. and passed by a majority vote 

This was demonstrated by the later - 
removal of an amendment by In a message, Mr Alan 
the UCW urging the recognition Sapper, chairman of the TUC 
of the need for a “national general council, said the Labour- 
economic assessment” between Party would not be allowed to 
trades unions and Labour from introduce any statutory legisla- 
te composite motion finally put tion restricting wages. 


ing hours and equal oppo 
tics 

The group’s main thru 
against Bifu’s “right i 
leadership hence a centra: 
posal for the election o: 


Steel plant men 
strike over 
suspension 

Financial Times Reporter 

PRODUCTION AT the British 
Steel Corporation plant in 
Corby, Northants, was halted 
yesterday when more than 2,000 
workers went on strike over two 
colleagues being suspended for 
refusing to handle scrap metal. 

Earlier in the day industrial 
action began over plans to 
move 14 workers in the scrap 
metal department to -another 
section and bring in outside con 
tractors. The workers involved 
all belong to the Iron and Steel 
Trades Confederation. 

9 Mr Arthur Scargill, president 
of the National Union of Mine- 
workers, yesterday gave bis full 
backing to Kent miners who are 
fighting for the development of 
the Snawdown Colliery'. 

The colliery’s management is 
to approach the National Coal 
Board for approval of a £3xn in- 
vestment scheme needed to 
keep the colliery open. 


Ambulance staff wage 
talks stall on 4% limit 


BY OUR LABOUR STAFF 

PAY TALKS between manage- 
ment and unions representing 
17.000 ambulancemen broke 
down- last night as expected. 

The unions restated their 
comou claim of 12 per cent for 
all health workers, while the 
management offer stayed with- 
in its 4 per cent limit — plus an 
additional £1.3m to finance the 
transfer from wage to salary 
status. 

The unions involved are 
the Confederation of Health 
Service Employees, the National 
Union of Public Employees, 
the General and Municipal 
Workers Union and the Trans- 
port and.. General Workers 
Union. 

No. fresh talks have been 


aranged, but the unions said 
they were still willing to discuss 
the wage-salary switch. 

Mr Terry MalKnson, the 
Uohse chief negotiator, repre- 
senting 6,000 ambul an cement, 
said yesterday: “To accept a 4 
per cent pay rise would mean 
an 8 per cent drop in living 
standards and is quite 
unacceptable.” 

C-ohse ambulance staff will 
join their union's campaign of 
Industrial action which begins 
on April 26. 

# About . 60 Glasgow 
ambulancemen went on strike 
for . two. hours yesterday -.in 
support of Mr.Ian CadelL Nupe 
branch , secretary, who was 
sacked. last week for talking to 
the press. 


Insurance pay offer vote 


BY OUR LABOUR STAFF 

MEMBERS OF the Association 
of Scientific, Technical and 
Managerial Staff (ASTMS) who 
work for the Legal and General 
Insurance Company have over- 
whelmingly rejected an 8J per 
cent pay offer. 

In a ballot of the 2,600 staff, 
78 per cent of those voting 
rejected the offer — which 
included a 2 per cent lump sum. 


About 85 per cent of those 
eligible voted. 

A slightly smaller percentage 
— about 65 per cent — voted for 
sanctions against the company 
if the offer isn't unproved. 

Mr- Jim Terry, divisional 
officer of ASTMS. said that 
sanctions would begin next 
Monday if there was no new 
offer and would escalate 


Where are 
the Metropole 
building on 
their conference 



hBlackpooL 

V\fe already serve the other rnaprcMiferakfi 
venues in Britain w^ourhotels at Brighton, 

Birmingham (National Exhibition Gentre)and London. 

. Blackpool was the obvious choice fora Metropotemnrfare^ 
centre in the north and the new Pembroke Hotel promises 
business and entertainment facilities beyond anything seen 
• there before. 

The hotel opens its doors in September 1982, but we re. 
open now for talks about making your conference the biggest 
suocessyet. . . . . 

Our reputation for smooth running organisation and top 
ralue-for-rroneyiswell benefit 

both largeandsmall meetings alike. 

Takead^nta^ of Britain's top choice in veiueand value 
by writing for more details of conference facilities atall of our 
axsuperbly appointed hotels- The Pembroke Hotel, 

North Promenade, Blackpool FYT 2JQ. 

Ortslephone (Q253) 24078. 

M 



LONDON - BRIGHTON - BIRMINGHAM • BLACKPOOL 


Militant engineering workers attack economic strategy 


election every five years. 

Tbe broad Left's policie 
for Bifu to take a bigger 
in TUC political discussi 
on the grounds that vir 
everything "political" or « 


BY PHIUP BASSETT, LABOUR CORRESPONDENT 


LEFT-WINGERS in the Amalga- 
mated Union of Engineering 
Workers yesterday sharply 
criticised the Labour move- 
ment’s alternative ' economic 
strategy, insisting that it should 
be supported by industrial 
action to remove the Govern- 
ment from office. 

Delegates to tbe policy- 
maki ng n ational committee of 
the AUEW engineering section 
meeting in Eastbourne held a 
lengthy debate on unemploy- 


to 


ment and sought policies 
reflate the economy. 

The conference called for: 

• A new National Enterprise 
Board set up to support the 
nationalised industries and 
groups faced with closure. 

• Early retirement at 60, a 35- 
hour week, and increased holi- 
days. 

• A reduction In overtime and 
an end to tbe misuse of the 
Youth Opportunities pro- 
gramme. 


• An improvement in training 
and education facilities pro- 
vided by the Manpower Services 
Commission. 

While motions approved by 
the AUEW also called for full 
support for the TUCTs alterna- 
tive economic strategy (AES) 
many speakers were critical of 
it because it did not have behind 
it tbe warning of a readiness to 
take industrial action. 

Accusing the Government of 


“ economic terrorism ** Mr Ron 
Halverson, unofficial leader of 
the AUEW left said the only 
thing which would persuade the 
Government to change its mind 
was direct action. 

Mr Terry Duffy. AUEW presi- 
dent. urged union members not 
to take the easy option of 


Finance Union. 

The union's leadership has 
been upset by the fringe acti- general secretary and all ! 
Tides of the Finance Workers time officials, and for the 
broad left at Biju's annual con- 
ference, in Blackpool this week. 

Mr Tony Benn was due to 
address an unofficial meeting 
last night hut could not attend 
because of illness. 

Bifu’s leaders, are concerned vise affects the members, 
not so much about the group's A spirited defence of t 
potential strengths it actively 
involves only about 30 to 40 of 
the 500 delegates, as about the 
effects which political activity 
could have on the union’s re- 
cruitment among one of Bri- 
tain's most moderate work- 
forces. 

The group was founded last 
November and is backed by at 
least three of the 30 members 
of the national executive. It 


redundancy money but to fight hopes to expand rapidly, 
for their jobs. They would be in the first issue, of Counter- 
backed by the AUEW. he said. Balance, the group's journal, 
though other unions were not outlines policies on such issues 


lism was mounted at the 
ference yesterday by Mr 
frey Chandler director-ge 
of the National Ecoi 
Development Office, amid 
tinued pressure among 
unions for a TUC boyce 
bodies that bring tog 
unions, employers and 
Government. 

If the National Ecor 
Development Office cc 
were abolished there wou! 
low a “great silence,” he 
It was a major force for t 


often so ready to do so. 


mg down institutionalised 
as low pay, redundancies, work- ners to communications. 


eHoAraxmesburg a t 
InwstxnentjS 


Consolidated 

Group 




(AH companies mentioned are incorporated in the Republic of South Africa) 

GOLD MINING COMPANIES’ REPORTS FOR THE QUARTER ENDED 31st MARCH 1982 
WITH COMPARATIVE FIGURES FOR THE PREVIOUS QUARTER 


Ubntein 


Estates 


The Randfontein. Estates Gold. Mining Company, Witwatersrand. 
Limited 

Issued capital: R10-S27 106 

(Dudded into 5 413 SS3 shares of RS each) 


DEVELOPMENT 

Daring the quarter ft total of 11 513 metres (13 3S6 metres) was advanced 
at the Cooke Section. Development from Cooke No. 2 Shaft in the 
Cooke No. 3 Shaft area on US and 128 levels amounted to 2 650 metres 
(3 221 metres). 

At the Randfontein Section 213 metres <183 metres) were advanced 
on the Rock T unn el, Toiiw and East Reef horizons. 


SAMPLING RESULTS 

The values shown m the following tabulations are the actual results of 
sampling reef development. No allowance has been made for any 
adjustments which may be necessary when co mputing ore reserves. 


OPERATING RESULTS 

Gold 

Ore milled - tons ........... 

Kilograms produced .......... 

Yield - grams per ton 

Revenue -per ton milled. ....... 

Working. costs -per ton milled. . . . . .. 

j Profit- per ton milled . . . 

'Uranium 

Tons treated ............. 

Kilograms produced 

Yield - kilograms par ton 

FINANCIAL RESULTS (ROOD) 

Revenue from gold 

Working costs 

Profit from gold . 

Profit from uranium 

Net sundry revenue 

Operating profit 

Net interest receivable 

Profit before taxation 

Taxation and State’s share of profit. . . 

Profit 

Capital expenditure 

Dividends declared . . . . 

NOTE: 

Aice received on gold sales: 

U.S.S par az. . . . . 
Rand per kg 


Quarter ended 


31.3J932 

31.13.1981 

2329 000 
6645 
6.0 
R55.80 
E29.67 

1283 000 
6 412 
6,0 
R67 JBO 
R29J22 

R26.13 

R38.5S 

755 000 
111160 
0,147 

778 000 
126173 
QJ62 

74153 
39 429 

86 985 
37 486 

34 724 

4 483 
404 

49499 
3 683 

1 554 

39 611 
1860 

54 736 
2523 

41471 

11661 

57 259 
6 402 

. 29 810 

50 857 

13 706 

3&361 

21655 


COOKE SECTION 


Quarter ■ended 
31.3.1982 


UE1A REEF 

No.l No. 2 No. 3 
Totals Shaft Shaft Shaft 

No.l No. 2 No.3 
Totals Shaft Shaft Shaft 

Sampled - metros 

. 2652 

987 1 293 

872 

3270 1062 1851 357 

Channel width 
-centimetres . . 

, 163 

171 ‘ 160 

153 

178 163 188 172 

Average value: 
Gold 

- grains par ton . 

- 8,1 

BJ8 30,1 

8,0 

7J5 6.9 7,9 7,2 

— centimetre 
grams per ton. 

. 1320 

992 1 616 1 224 

1335 1125 1 485 1238 


Uranium. 

-kilograms per ton QJMQ 0,120 0,260 0,510 
~ centimetre 

kilograms per ton 39,12 20.52 41,60 78,03 


Quarter ended 
3JJ3J981 


0,240 0.140 (1240 0,460 
42,72 22,82 45,12 82,56 


Quarter ended 
31.3.1982 31J2.1981 
363 426 

11 519 13 107 


RANDFONTEIN SECTION 

MAIN REEFS 

Sampled - metres 

Channel width - centimetres 1 . - 

Gold 

Av. value - grams per ton ......... 

- centimetre grams per ton .... 


Quarter ended 


31.3.1982 

31.12J9S1 

165 

96 

150 

88 

2,7 

3.5 

405 

308 


SHAFTS 

COOKE NO. 1 SHAFT 

The installation of the larger rock winder is on schedule and commis- 
sioning is due during the second quarter. 

COOKE NO. 2 SHAFT 

The conversion of the ventilation shaft for hoisting is progressing 
well and should be completed during the third quarter. 

COOKE NO. 3 SHAFT 

Sinking operations advanced from 772 metres to 937 metres below 
collar and included the cutting of 106 and 118 level stations. On 22nd 
March. 1982 a holing was effected on 11S level with development 
advanced from Cooke No. 2 Shaft. 


PRODUCTION 

GOLD 

Underground ore waa supplemented by 529 000 tons f47S 000 tone) 
from old surface tailings and rock dumps. Despite the greater through- 
put of low-grade material the recovery grade was maintained daring 
this quarter. 

URANIUM 

The production of uranium was adversely affected by thp cessation of 
ations at the Milkjto plant and by plant operating difficulties, 
* have since been overcome. 


CAPITAL EXPENDITURE 

In view of the weaker gold price the capital expenditure programme 
has been reviewed and certain items of expenditure have been deferred. 

Net expenditure on mining assets during the quarter amounted to 
R13 054 000. Sales of other assets amounted la R16 000. At 31st March, 
1982 there were capital commitments amounting to Rl4 -10S 000- 


For and on behalf of the Board 
„ G. Y. NISBET 
R. C. BERTRAM n,rcctars 


Western 


Western Arens Gold Mining Company limited 
Issued capital: K40 306 950 
( Divided into 40306 950 units of stock of Rl each ) 


OPERATING RESULTS 

Gold 

Ore milled - tons ............. 

Kilograms produced. ........... 

Yield - grams per ton 

■Revenue -per ton milled 

Working costs - per ton milled 

Profit (Loss) - per ton milled 

Uranium 
Tons treated 


Quarter ended 
31.3J.982 31J2J9&1 


Yield- kilograms per ton - - - 

FINANCIAL RESULTS (R000) 

Revenue from gold 

Working costs * 

Profit ( Lose) from gold 

Profit from uranium 

Nat sundry revenue ........... 

Operating profit (loss) 

Net interest receivable 

Profit (Lose) before taxation . 

Taxation and State’s share of profit . . . » 
Profit (Loss) ............... 

Capital expenditure ...... 

Dividends declared 

NOTES: 

1. Price received on gold sales: 

U.S-Speroz 

Rand per kg. 


992 000 

1061000 

3869 

4138 

. 3,9 

3.9 

H45.64 

R5M6 

R49.06 

R43.52 

(R3.42) 

R9JJ4 

154 000 

- - 

26 535 

— 

0,17 


45S79 

5B7S6 

48 666 

46177 

(3387) 

9 589 

9B 

— - 

385 

277 

(2894) 

9866 

1 254 

1535 

(1 640) 

31401 

. 450 

U 636) 

(2 090) 

13 037 

7697 

13 923 

— 

8061 


DEVELOPMENT 

A total of 8 354 metres (10 SIS metres) was advanced during tbe quarter. 
Xncldded in the above total is Middle Elsburg development amounting 
to 1 663 metres (1 249 metros). 


SAMPLING RESULTS 

The values shown in the following tabulations are the actual results 
of sampling reef development. No allowance has been made for any 
adjustments which may be necessary when computing ore reserves. 


VENTEHSDORP CONTACT REEF 
AND UPPER ELSBURG REEFS 



Quarter ended 
31.3.1982 \ 


Quarter ended 
31.12.1981 

Total Venter*- Ebfaafj! EUdtY 

AU dorp Mi*si«u Im&n- 
Mi Cnnigi Rtaik 

T««l 

All 

Itato 

Veartrv 

<kap 

c K? t 

Uihn: 

Jjjjjjl 

EUurc 

Isdrn- 

ifuaJ 

JM, 

Sampled 

- metres ... 1 146 

177 345 

624 

1236 

147 

591 

49S 

Channel width 
- centimetres . 177 

94 188 

194 

191 

62 

209 

207 

Average value: 

Gold 

-grams per ton. 7,2 

19,4 7,0 

5,6 

5,9 

15,9 

6,1 

4.9 

- centimetre 
grams per ton. 1274 

1824 1316 

1086 

1127 

S36 

1275 

1014 


Quarter ended 

31.3.1982 31,12.1981 
362 424 

31 572 23 177 


2. The taxation liability of R450 000 is in respect of non-mining income . 


MIDDLE ELSBURG REEFS 

Sampled - metres ....... 

Channel width « centimetres .. . 
Average value: 

Gold 

- grams per ton 

- centimetre grams per ton . . 

Uranium. . 

- kilograms per ton ...... 

- centimetre kilograms per ton . 


Quarter aided 


31.3J98S 

31.1S.1S81 

267 

309 

161 

169 

2^ 

3,3 

354 

558 

0,49 

0.73 

78,69 

123,37 


PRODUCTION 

GOLD 

Production was interrupted by numerous pow er failures and the break- 
down of a major compressor serving the South Shaft. In addition, 
underground production -cont in usd to be adversely affected by reduced 
shaft availability. 

The commissioning of a screen mg plant on surfher. while improving 
the grade of surface material, reduced the tonnage treated from J52 ioo 
urns to 136 MX) tons in the quarter. 

In view of the weaker gold price the short-term mining plan is being 
revised with the object of improving the grade of ore from underground 
sources. 


URANIUM 

S to ping operations on the Middle Elsburg reef horizon have now 
attained the planned level for the current year. The uranium plant 
has been fully commissioned and although problems are still being 
encountered with the filtration section, uranium recovery is expected 
to increase. 


SUB-VERTICAL SHAFTS 

At the S.V. 3 Shaft, sinking and lining operations continued and the 
shaft advanced 94 metres flS2 metres) to 942 metres (546 metros) below 
collar with 95 metres (136 metres I being concrete lined. The cutting 
and lining of 78 level station hove been completed and excavation for 
SO level station has also been completed. 

The 4E S.V. Shaft is now operational. 


CAPITAL EXPENDITURE 

The capital expenditure programme has been reviewed and expenditure 
on certain projects has been deferred. 

Net expenditure on mining assets during the quarter amounted to 
R7 651 000. Sales of other assets amounted to R54 000. At 31st March, 
1962 capital commitments amounted to Ho 625 OOO. 


For and on behalf of the Board 
G.Y. NISBET — . 

R. C. BERTRAM DLnxt ° rs 


lUborg 


Elsburg Gold Mining Company Limited 
I round capital: R30 203 000 4 

(Divided into 30 203 000 units of stock ofR] each) 


Stockholders arc advised in study the operational results published bv 
Western Areas Gold Mining Company limited. 


DIVIDENDS DECLARED (&000) 


Quarter ended 
31.3.1962 3US.1SS1 
Nil R3927 


For and on behalf of the Board 
G.Y. NISBET n - . 

R. C. BERTRAM ■ 0irec(w * 


Johannesburg Consolidated Investment Company, Limited 

Building, Fax and Harrison. Streets, Johannesburg 2001 
P.O. Box 590, Johannesburg 2000 


of Barnato Brothers Limited 

99 Bisbopsgata. London EC2M 3XE 
England 


_ . ... _ 20th April, li 

Copira eftinsso reports, in English or Afrikaans, are a vailabl e 
request from the offices of the transfer secretaries. 





12 


Financial Times Wednesday .April 21 laaa 


UK NEWS - PAEI.IA MENT and POLITICS 


YM TO MAKE BRITISH SETTLEMENT PROPOSALS IN WASHINGTON TOMORROW 


Pym wins 

[hatcher retains broad support on Falklands b ?cbmg 

of most 
ToryMPs 


Commons Sketch 


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BY IVOR OWEN 

RM UNDERTAKINGS by the 
Lme Minister that Britain 
rains ready to seek a drplo- 
fltac solution to the Falkland 
and s crisis yesterday assured ■ 
i Government of _a further 
xnd of all-party suiqjort in 
i Commons. 

Undercurrents of criticism 
ire apparent among some 
•verament back benchers and 
ail groups of Labour MPs. 
t the ywere almost, entirely 
ymerged beneath support for 
i mission Mr Francis Pym, 
f Foreign Secretary, will 
ike to Washington tomorrow. 
Alls Thatcher . stressed that 
i proposals cabled to London 
>m Buenos Aires late on Man- 
y by Mr Alexander Haig, the 
S. Secretary of State, were 
yse of the Argentina Govem- 
mt 

With equal emphasis, she 
derlined the fact tiiat they 
d short of the objective of 
anmteefcng the Falkland 
anders the right of self-deter- 
nation which she believed 
d the support of nearly every 

The Prime Minister declined 
give any details, but 
nounced that Mr Pym would 
making counter-proposals 
ten be meets Mr Haig in 
ashington. 

To cheers from all quarters, 
e declared: “We do remain 
mmitted to seeking a diplo- 
atic solution, if one can pos- 
ily be found tbat is accept- 
le." 

She explained that the 
jvemment regarded the latest 
•gentine proposals, now being 
bjerted to detailed and care- 
1 study, as “a stage in the 
gotfattog process, which must 
w be continued.” 

While acknowledging the 
iportance of maintaining the 
itty displayed in the Commons 
ice the invasion of the islands 
is announced, she rejected a 
ggestion by Mr Boy Jenkins 
iDP Glasgow - HiHhead) tbat 
nfide-ntial consultations should 
■ held between the leaders of 
I the political parties at West- 
inster. 

The Prime Minister indicated 
at she shared the reluctance 
ready expressed by Mr Michael 
io(, the Opposition leader, for 
n barking upon such a course. 
But she promised that the 
jvefnment would continue to 



Roy Jenkins: all-party talks 


keep the House — and, therefore, 
all MPs — as fully informed as 
possible. 

Mr Foot urged the Govern- 
ment to reconsider the sugges- 
tion made, on Monday, by Mr 
Denis Healey, shadow Foreign 
Secretary, that the United 
Nations should be involved in 
the negotiations. 

A major source of the 
strength of Britain’s case, he 
said, was that she had been 
acting in conformity with the 
UN Charter and pursuing the 
objectives embodied in resolu- 
tion 502 approved by the 
Security Council. 

The Prime Minister acknow- 
ledged the importance of the 
United Nations, but questioned 
whether it would be wise while 
engaged in one negotiations to 
risk getting the “wires' 
crossed ’’ by introducing a new 
dimension. 

Britain was seeking to 
secure the implementation of 
the UN Security Council reso- 
lution — not an easy task — and 
also had rights of “ self 
defence ” under the UN charter. 

Mr George Gardiner. CCon 
Reigate) appealed to the Prime 
Minister- to consider any pro- 
posals from the Argentines 
with great caution, bearing in 
mind that if an aggressor was 
even half compensated for his 
aggression others would be 
encouraged to behave likewise. 


The Prime Minister replied 
that she accepted the point 
made by Mr Gardiner, which 
had been strongly expressed 
from all sides of the House 
during earlier discussions on 
the invasion. 

With Tory MPs cheering 
approval she insisted: “We 
shall of course try to seek a 
diplomatic solution but we have 
to' be true to our objectives. 

“I cannot disguise from the 
House' that the Argentine pro- 
posals at present before us fall 
short in some import respects 
pf those objectives and require- 
ments expressed in the House.” 

Mr David Steel, the liberal 
leader, cautioned the Prime 
Minister against interpreting 
the all-party agreement on the 
need to remove Argentine 
troops from the islands as 
blanket support for some of the 
longer-term objectives now 
being discussed. 

The Government's declared 
intention to make the wishes 
of the inlanders paramount 
should, not be ascribed to the 
House as a whole because it 
was for the House itself to be 
paramount in resolving the 
long-term issues. 

Hr Stan Newens (Lab.. 
Harlow) argued that if the UN 
became more deeply involved 
in the negotiations the United 
States would be free from the 
necessity of having to act in 
what was called an “ even- 
handed’' fashion. 

He declared: “If the United 
States were to adopt the same 
economic sanctions and bring 
the same sort of pressures to 
bear on the Argentine as the 
countries in Western Europe 
and the Commonwealth have 
already done this in itself would 
make a moral and economic im- 
pact which would make the pos- 
sibility of a diplomatic solution 
much more likely” 

Choosing her words carefully 
the Prime Minister said 
Britain believed that Mr Haig 
had been a very good and an 
appropriate negotiator. 

“ But a negotiator must have 
credibility with both parties to 
the negotiation. It is in our 
interests that he should con- 
tinue to have that credibility.” 

Mrs Thatcher added that 
everyone knew that the United 
States, like Britain, was a 
democracy. 



THE SWEET SMELL 
OF SUCCESS. . .AGAIN 


.1 « I . 



19 82 


Awarded to the Fragrance Division of 
PPF International Limited 


THE FUTURE IN 
FRAGRANCES, 
FLAVOURS AND 
FOOD INGREDIENTS 



PPF INTERNATIONAL 


The Queen's Award for export achfevement 1966. T971. 1975. T98Z 



EMCO WHEATON U.K. LIMITED 

MARINE LOADING ARM DIVISION, 

MARGATE, KENT. 


1 9 8 2 


is pleased to be the recipient of the 
QUEEN'S AWARD FOR EXPORT ACHIEVEMENT 1982 

..EMCO WHEATON U.K. LIMITED, 

WESTWOOD, MARGATE KENT, U.K. 


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Mrs Thatcher leaving Downing SL for the Commons yesterday 

Ulster Bill opponents 
suffer early defeat 

BY MARGARET VAN HATTEM, POLITICAL STAFF 


OPPONENTS of Mr James 
Prior’s plains for devolved 
government in Northern Ireland 
have been out-manoeuvred in 
the drst skirmish of a .battle 
expected to last weU into the 
summer. 

Mr Prior’s BEl providing for 
the transfer of some power from 
Westminster was introduced in 
the Commons yesterday, despite 
opposition from several 
Unionists and Tories, who had 
pressed for a debate on the 
Northern Ireland White Paper 
before the Bill’s introduction. 
The Bill will be published later 
today. 

The opposing faction had 
hoped to master a sufficient 
demonstration of hostility 
during the White Paper debate 
to discourage the Government 
from proceeding with legisla- 
tion during the current session 
of parliament. 

This would virtually have 
ended the possibility of any 
initiative before the next 
general election, after which 
the Unionists hope to be in a 
stronger position. 

By introducing the Bill 
yesterday the Government has 
rammitred itself to passing the 
legislation this sesion, however 
much hostility may surface 
during the White Paper debate, 
which is now expected to be 
held next week. 

Although a small minority of 
Mr Prior’s Cabinet colleagues, 
Including the Prime Minister, 
are understood to have ex- 
pressed strong reservations 
about his chances of success in 
the” province. the Prime 
Minister is believed to have 
suooorted him in moves for the 
Bin’s earlv introduction. 

The Bill is expected to get 
its Second Reading in the first 
week of May. The White Paner 
debate about a week before 
may take some of the heat out 
of the second debate and help 
to shorten it Nevertheless, 

Talks on future 
of Concorde 

By Our Political Staff 
MR NORMAN LAMONT. 
Industry Minister, is to have 
-talks on the future of Concorde 
in Paris on May 6. 

Mr L&mant told the Commons 
last night that joint Anglo- 
French studies had now been 
submitted to the two govern-' 
ments covering various options 
for the future of the super- 
sonic jet 

“ I shall be meeting the 
Fr ensfc Minister of Transport 
M Fiterman, in Paris on May 
6 to consider them and other 
matters related to the future of 
Concorde.” 

Guillotine approved 
for Employment Bill 

A GOVERNMENT motion to 
guillotine debate on the 
Employment Bill was approved 
with a majority of 53 ( 290-237). 


the Government is expecting 
some . determined filibustering 
from the unionists, in particu- 
lar from Mr Enoch Powell, both 
during the second reading 
debate and during the Com-- 
mittee Stage. • 

Like all constitutional 
measures the Bill will be taken 
on the floor of the House. 
Although the BLU has been kept 
to a succinct seven da uses to 
minimise the scope for fili- 
bustering there is still an out- 
side possibility that the BUI 
may have to be ' guillotined. 
Labour and the. SDP/Liberal 
Alliance ' have indicated that 
they will support the Govern- 
ment and opposition on the 
Tory back benches is estimated 
at around 15 to 20 MPs. 

This seems to be well within 
the limits of what the Govern- 
ment is prepared to tolerate, 
although should the number of 
rebels rise to around 40 it is 
possible that the Government 
might think again on some of 
the Bill’s provisions. 


By Elinor Goodman, 

Political Correspondent 

MR FRANCIS PYM. the Foreign 
Secretary, last night won the 
support of a packed meeting 
of the Conservative foreign 
affairs committee for the 
Government’s view that Argen- 
tina’s proposals for striving the 
Falklands Islands dispute are 
totally inadequate. 

Mr Pym, who was addressing 
his first meeting of the com- 
mittee since taking over as 
Foreign Secretary, was warmly 

applauded when he repeated 
that, while the Government 
would explore every diplomatic 
option for solving the dispute, 
it was prepared to use force 
if necessary. 

A united Tory Party is 
essential to the strength of the 
Government’s negotiating hand, 
and it was clear at Westminster 
yesterday that the Government 
was still carrying with it the 
great majority of Tory MPs. 
Virtually all Conservative MPs 
seemed to agree that the 
Government was right in pre- 
paring counter-proposals of its 
own. 

Behind this general agree- 
ment, however, there were signs 
of differences emerging over 
how far the Government should 
push the negotiations, and what 
it should regard as sticking- 
points. 

Sir Angus Maude, the former 
Paymaster General, articulated 
the views of th ehawks when 
he said the proposals were no 
basis for negotiation. 

He said he did not thitife the 
Government could survive if it 
negotiated a deal along these 
lines. 

Other Tory - MPs. however, 
took a more optimistic view, 
and welcomed Argentina's 
apparent readiness to withdraw 
troops as a sign that progress 
was being made. 

Three speakers warned that 
the Government would almost 
certainly have to compromise 
eventually, and that it would 
be far better to do. so before 
going to. war, rather than after 
lives had been lost. 

Most MPs backed Mr Pym's 
stress on the need to continue 
the search for a diplomatic solu- 
tion, but one or two MPs made 
it celar they thought military 
action should not be' delayed 
much longer. 

Afterwards, there seemed to 
be a growing view that the Gov- 
ernment should take South 
Georgia as soon as possible so 
as to add to the pressures on 
Argentina. 

The criticism from Conserva- 
tive MPs focussed on the three 
main issues which the Govern- 
ment has identified — 
sovereignty, the proposed role 
for Argentina in the interim 
administration, and the question 
of the islanders' right to deter- 
mine their own future. • 

. Some Tories were saying that 
it was quite unacceptable that 
Argentina should participate in 
any interim administration, 

*No sport with 
Argentines’ call 

SPORTS organisations should 
coll off matches planned ta take 
place in Britain against 
Argentine teams. Mr Neil Mae- 
Fariane. Sports Minister, urged 
yesterday. 

He said in a Commons writ- 
ten replyi- “In present circum- 
stances I would urge British 
sporting bodies not to complete 
any trilateral fixtures against 
their Argentinian counterparts 
scheduled in the UK, and to 
refrain from issuing further 
invitations.” 


The Iron Lady leads 
with her right to the 
armchair strategists 


FOR A fleeting moment yes- 
terday it seemed possible that 
the Commons was about to 
get through Prime Minister’s 
Question Time without dwell- 
ing at Inordinate length .on 
the Falklands crisis. 

The first question, from 
the unpredictable Mr Tam 
Dalyeli (Lab West Lothian) 
concerned the appointment of 
government financial advisers. 
But, as often happens with 
Tam, his real complaint con- 
cerned something completely 
different — in this ease the 
Government’s decision to sell 
off BNOCs North Sea oil 
operations. ■ 

These Scottish MPs seem 
to be resourceful chaps, and 
Mr George Foolkes (Lab 
Ayrshire South) soon brought 
the matter back to the Falk- 
lands by asking what assess- 
ment the Government's 
financial advisers had made 
of the cost of the military 
operation. 


Alter-ego 


It seems, however, that 
when it comes to paying for 
the task force Mrs Thatcher, 
the fervent monetarist, is 
completely dominated by her 
alter-ego as the Iron Lady. 

■ “I hardly think that particu- 
lar question is relevant,” she 
snorted. 

From that moment on, the 
waters of tile South Atlantic 
were once more flowing 
through the Chamber, with 
Mr Michael Foot. Opposition 
leader, doing his bit as 
sagacious statesman and 
super-patriot, and Ml the 
armchair startegists and diplo- 
matists having their say. 

Roy Jenkins, the Social 
Democrat hero of Billhead, 
got himsfrif fate a verbal 
tangle when — as far as we 
could make out— -he seemed 
to be backing a call from 
Geraint Howells, the Liberal, 
for the Prime Minister to call 
in leading figures from other 
parties to discuss the crisis. 

The ribald left-wing 
scourges of the SDP 
immediately seized on this as 
sinister evidence that Roy was 
already trying to get his foot 
in the door of Number 10. 

With Prime Minister's 
Question Time oat of the way, 
It became apparent that the 
Commons has reaped at least 
one benefit from the Falk- 
land^ affair. 

In the musical chairs follow- 
ing the resignation of Lord 
Carrington and Mr. Francis 
Pym's appointment as Foreign . 


Secretary, the delightful Mr 
John Biffen has ended up as 
Leader of the Commons. 

Once again, wit and 
eloquence are fo be toad 
from the Toty front bench, 
the first time this has 
happened since Mr Norman 
SL John-Stevas was sacked 
from this particular job. - 

In his first major appear* , 
anee in his new rule, Mr 
Biffen had the nnpoputo task 
of fordq# through a guillotine 
motion to curtail debate on 
the controversial Employ- 
ment. Bin, which introduces 
more trade union reforms, " 

He swiftly proceeded to 
carve up the Labour front 
bench with -a deftly wielded 
scalpeL. Genially, he com 
graduated Hr Foot for stay- 
ing on to hear the debate. 

Presumably, he mused, the 
leader of the Opposition was 
doing this out of nostalgia. 
For wasn’t he the very man 
who created a record by bag- 
ging five guillotine motions in 
one blast of gntpeshof when 
he was Leader of the House 

Bat in those good old, pre- 
Falkland days, recalled Mr 
Biffen, Air Foot could. still be 
mistaken for a radical when 
seen in suitably subdued 
lighting. 

Just to rub in the message, 
he quoted from in article Mr 
Foot had written when- he 
was managing director- of 
Tribune 20 years ago and was 
haring an argument with that 
formidable right-wing trade 
union loader, Arthur Deakln. 


Special bods 


- "Trade union leaders are 
not a special breed at 
humanity always - able to 
shelter from the rough 
breezes of democracy, special 
birds to be protected by 
special game laws,” wrote Mr 
Foot 

Anyway, suggested Mr 
Biffen, Labour should be only 
too eager to abandon its 
“trial by verbiage" and get 
the BIB a Third Reading, if 
only to witness the tantalising 
spectacle of how the divided 
SDP would vote. 

After that we had Mr John 
Silkin, Labour's shadow 
Leader of the House, ful- 
minating against the legisla- 
tion as “the worst BOl since 
the Industrial Relations Act 
of 1971 . . . divisive and con- 
tentious.” 

Heigh-ho, back, to the old 
politics of confrontation. 

John Hunt 


Kitson expected to chair 
defence select committee 

BY. BRIDGET BLOOM, DEFENCE CORRESPONDENT 


THE Falklands crisis has 
delayed the work of the select 
committee oh defence which is 
today expected to elect a new 
chairman to replace Mr Cranley 
Onslow (Con. Woking). 

Mr Onslow, who has been 
chairman only since last July, 
was appointed Minister oE State 
at the Foreign Office after the 
resignations over the Falklands 
invasion of Mr Humphrey 
Atkins and Mr Richard Luce, • 

Sir Timothy Kitson (Con., 
Ridunond, Yorks.) is likely to 
be elected chairman at a 


private session Axis morning, 
which is also expected to dis- 
cuss how the committee’s full 
agenda can be fitted into the 
remaining weeks before the 
Whitsun recess. 

The committee’s main inquiry 
this session has been into the 
way the Ministry of Defence 
spends an annual £6bn on 
defence equipment Key sessions, 
involving Mr Geoffrey Pattie 
and Lord Trenchard, ministers 
responsible for procurement, 
were postponed because .of the 
crisis." 


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13 


Financial Times Wednesday April 21 1982 


FINANCIAL TIMES 



Wednesday April 21, 1982 



The demand for greater sophistication in handling and storage systems is putting considerable pressure on suppliers to adapt their 
equipment The application of computers is also bringing a greater integration of these facilities into the total production process. 


Exciting times 
for Cinderella 


BY HAZEL DUFFY 

EVERYBODY NEEDS handling 
and storage but nobody- wants 
it Thus the industry grew up 
as the Cinderella in relation to 
the weightier needs in the 
manufacturing process, leaving 
sectors such as the storage and 
distribution of food, drink, mail 
order, etc to set the pace in 
developing more advanced 
systems. 

But the past few years have 
seen a revolution in the 
approach to handling and 
storage made possible by the 
application . of computers to 
integrate these essential 
elements more closely into the 
total production process. 
Although installed automated 
materials handling systems are 
still very much in a minority, 
their contribution to more effi- 
cient methods is being increas- 
ingly recognised and it is esti- 
mated that by 1985 25 per cent 
of the installations market in 
warehousing and production 
units will have moved to auto- 
matic or semi-automatic 
working. 

A recent report* on auto- 
mated systems identified ware- 
houses, cold stores, high 
volume mechanical and elec- 
trical engineering production, 
food, drink and tobacco, whole- 
sale and retail distribution 
centres as being the key indus- 
trial sectors in this trend. The 
justification for installing such 
expensive capital equipment is 
greatest in the area of identi- 


fied savings, particularly in 
wage costs. 

The evidence from companies 
which have put in systems, 
however, is that there are other 
good reasons as well. The 
inventory cost is invariably 
reduced, quality control 
improved, there is a con- 
siderable redaction in acci- 
dents, the working environment 
is improved and there is scope 
for increased throughput 
(which is often the prime 
reason for installing such 
systems in the first place}. 

Most systems have been 
installed in the U.S. and Japan, 
where the technical strengths 
in complex systems are now 
well established. There is 
little doubt that once the re- 
cession is over interest in the 
expanding area of automation 
will manifest itself in invest- 
ment, particularly in the U.S. 
where industry is very con- 
cerned to catch up - with 
Japanese levels erf efficiency. 

European Industry, the UK’s 
in particular, has been slower 
to recognise the benefits of 
such investments, arguing to 
some degree that it does not 
have the necessary investment 
resources but also that until it 
sees such systems in operation 
it must remain sceptical about 
what they involve. In indus- 
tries which have a high inter- 
national profile, however, this 
attitude is changing as it is 
acknowledged that low-cost pro- 
duction and distribution is the 



Coventry Climax trucks in use at McGregor Cory Warehousing, an Ocean Group 
company and one of the largest warehousing operations m Britain. Many 
specialised handling facilities will be featured by 200 exhibitors at the Fifth 
Storage Handling and Distribution Exhibition which opens at Ixmdan’s Earls * 

Court on April 26 


only way to maintain a com- 
petitive profile. 

The demand for greater 
sophistication in handling and 
storage systems is putting con- 
siderable pressure on suppliers 
to adapt . their equipment 
accordingly and he able to 
mount a turnkey, capability in 
some cases. This pressure will 
grow, emphasising that the 
survivors in the sector will he 
those which are already adapt- 
ing to changing demands even 
if the major part of the market 
continues to be for more tradi- 
tional equipment In the 
longer term a number of sup- 
pliers which sprang up during 
the expansionary period for 
mechanical handling equip- 


ment may well find that this 
type of equipment is becoming 
redundant 

The decline of heavy 
industry dn the advanced manu- 
facturing nations over the past 
few years has already led to 
examples of such redundancy. 
As an example, suppliers of 
cranes in the UK for steel- 
works have found their order 
books almost non-existent As 
the emphasis continues to be 
on capacity redaction in 
Europe, demand is not thought 
likely to improve very much, 
although in both Europe 
and the U.S. there is still 
plenty of need for steelworks 
modernisation. 

likewise, the poor investment 


record in recent years by ports 
and railways in the developed 
world has had adverse effects 
on the industries supplying 
them with capital equipment 
There has been some compensa- 
tion, however. In the develop- 
ment of new port facilites in the 
oil-producing countries, while 
oil exploration and development 
hi the North Sea continues to 
provide orders for specialised 
handling equipment suppliers. 
Road-to-rail container handling 
by container cranes is another 
example of an important area 
where handling can lend itself 
to automated systems. 

The range of handling 
requirements of industry (both 
primary i and manufacturing) , 


CONTENTS 


UK hoists and cranes: 
signs of recovery n 

Consumer industries: new 
UK systems needed II 

Lift Trucks: stress on 
value for money in 

Automated warehouses: 
Europe catches up HI 

BHIHB: board widens its 
net m 

Heavy handling equip- 
ment: dinosaurs return 
IV 

Fiat: robots take on 
engine assembly IV 


retailing, bulk material trans- 
port like - coal, cement, ores, 
grain, and the like, is so vast 
and varied that it makes treat- 
ment of it as an individual 
. sector impossible. It is a prob- 
lem that has been confronted by 
government, for instance, which 
is anxious to improve the 
efficiency of industry and dis- 
tribution by spreading aware- 
ness of the benefits to be 
derived from proper handling, 

without notable success 

Nearly all handling needs 
therefore have to be custom- 
designed if the user-is to -derive 
the maximum benefit From 
the suppliers’ point of view it is 
ideally a system that can then 
be adapted elsewhere. Prob- 


ably the most successful 
approach is for the handling 
and storage requirements to be 
incorporated into the overall 
development plan of, for 
instance, a factory or a new coal 
mine. 

Conveyor suppliers to the coal 
industry have shown consider- 
able innovation in response to 
the National Coal Board's 
requirements and it is hoped 
that these developments can be 
incorporated in export work as 
well. Similarly, industries 
which need to stock a large 
range of spare parts for after- 
sales service are frequently 
leading the way in innovative 
warehouse designs and success- 
ful systems of this type 
obviously have sales potential 
beyond their national bound- 
aries. 

Suppliers of handling and 
storage equipment have tended 
to concentrate on the needs of 
their national customers, with 
the exception of the lift truck 
sector which has been highly 
international from the outset 
and has a strong multi-national 
representation among manufac- 
turers. The advent of automa- 
tion and computer-controlled 
movement, however, is changing 
this rather parochial attitude. 

The need to apply electronics 
expertise across a very large 
section of modem handling and. 
storage is leading to an exper- 
tise being built up which is 
more of an exportable com- 
modity. In particular, the rela- 
tively small number of com- 
panies specialising in a turnkey 
approach must necessarily 
market their expertise on a 
worldwide basis. 

There is also a growing ten- 
dency among suppliers to con- 
centrate more on particular 
applications. The visitor to an 
airport almost anywhere in the 
-world, for instance, - would 
notice that the names on con- 
veyor systems, both for pas- 
sengers and baggage, are “inter- 
national’’ suppliers. 


There has always been a 
marked concentration among 
only a handful of suppliers nf 
certain types of equipment, 
such as lifts and escalators, 
which is an international indus- 
try. Specialisation seems likely 
to increase, however, as the re- 
sources needed to design and 
produce advanced systems will 
require an international cus- 
tomer market. 

At the same time, at the other 
end of the scale, there are 
numerous suppliers of the con- 
ventional and less dramatic 
equipment, such as pallets, con- 
tainers, racking systems, etc., 
which are the staple require- 
ment for the handling and stor- 
age needs of large parts of the 
population in the home, office, 
factory, warehouse and so on. 
Likewise, in the storage of bulk 
materials much of the equip- 
ment that is currently used, and 
will continue to be used, is of .1 
conventional nature. 

In the factory, however, them 
is very wide scope for morr 
systematic approaches to the 
handling and storage of work- 
in-progress, components amt 
spares. In its most advnnred 
form this will extend to highly 
sophisticated methods in, for 
instance, the transport of com- 
ponents for machining. The 
introduction of flexible manu- 
facturing systems, mostly in 
Japan and the U.S.. which inte- 
grate with automatic handling 
herald a great change in an 
area where manual labour has 
predominated. 

Although the primary aim of 
such systems is to secure more 
efficient production methods, the 
implications for handling equip- 
ment are not to be overlooked. 
From the point of view of the 
systems that are becoming 
available this is one of the most 
exciting periods for the 
industry. 

* Automated MH systems. 
Working group report to the 
British Materials Handling 
Board. £5.00. 





With company budgets being 
squeezed till they squeak, how can you 
afford the efficient new lift trucks you 
need to stay profitable? . 

Tile-answer’s anothersqueeze-to 
your materials storage areas. 

For Lansing have produced a unique 
new ultra-narrow-aisle turret truck 
that just about any company can use. 

By turning ordinary storage space 
int o high-density space in existing 


The secrete in the twist 



Rugged side-reach 
■features precise 
joadiiiacenient 

180° rotating head. 

Adjustabteforks 
with interchangeable 
lengths. 


Pre-set electronics control 
reach and rotation for safe, 
rapid operation. 


Lansing pioneered the turret frock principle with 5 b 
unique lift-readi-rotate head, back in. 1964. 

Instead of the whole truck tarnmg-Uie cause of toe ^ 
typically wide standard storage aisle-only toe load-canying 
headactaanyturnsl _ ;• _ 

So aisles need beharely wider than toe width. of toe ^ 
truck-saving an enormous amount of space compared vrito 
other types, and, so considerably incBeasmg- storage space 
■within a given area. 


AiAemith 
-as little® - 
Him. 








y.'i 




squeeze. 


buildings, this brilliant new Lansing 
FAER6/L25 can give you up to 20% more 
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Like every Lansing lift truck-electric 
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it It perfectly fits your needs- 
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The unique FAER fi^L25 
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Three separate braking 
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Snpeib ergonomic layout 
for operatra; giving excep- 
tional comfort and visibility. 

Optional equipment allows 
bnried-wire guidance, auto- 
braking, lateral and height* 

gftlertinm 

auto-sequence and cold- 
stare operation. 



So contact Lansing now. The FAER 
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It fits neatly between our reach-truck 
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Lansing’s FAER 6/L25 makes its 
debut at Stand 81, Earls Court 
SHD Exhibition, 26th-30th April. 

Come along. 

Lansing Bagnall is voted outright leader 

A wholly independent and unsponsored 1981 survey of 
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Lim ited produced these results: 


High Quality... ......... 

Good Design. 

Reliability 

Low Running Costs....:.-. 

Service Back-up .. 

Longlife 

Competitive Price ........ 



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14 


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INTERNATIONAL STORAGE AND HANDLING D 


.. Financial Times Wednesday April’ 21 1082 r *• 1 - 


The hoist and crane industry reorganises after two bad years 


Market shows signs of recovery 


THE T7K crane and hoist in- 
dustry has suffered badly 
during the past two years, with 
some companies’ output failing 
to around half the level ex- 
perienced in- late 1979. Kit 
there are signs of slight re- 
covery in some sectors. 


; Lack of new investment, par- 
ticularly in the mechanical en- 
gineering industry, and the 
overall failure of companies to 
replace outdated lifting gear 
are cited as the main causes 
of the depressed market in the 
medium- and light-weight range. 

The heavy crane market has 
been hit by the virtual bait in 
this type of investment by the 
British Steel Corporation and a 
decline in the number of heavy 
engineering projects, although 
some optimism about thin sec- 
tor is now being expressed. 

The recession has also led 
to continued rationalisation 
within the industry, with 
Norcros having regrouped a 


number of manufacturing acti- 
vities within its subsidiaries 
AJB. Cranes of Telford, John 
Smith of Keighley, and Adam- 
son Buttertey Engineering of 
Ripley, Derbyshire. 

J. H. Carru there of East Kil- 
bride. Scotland, has been sold 
by Bunnah Engineering to- a 
syndicate of financial institu- 
tions, with its former manag- 
ing director, Mr ’William 
Cowan, returning from retire- 
ment to head the company 
again. 


Mr Cowan says that there is 
sow "a glimmer of light” in 
the UK market and the com- 
pany’s order book had leng- 
thened to around six months, 
with further good prospects in 
the shipbuilding, construction 
and motor industries. 

This recovery from a very 
serious position at the end of 
last year had been assisted by 
improved demand from the 
Middle East, while the com* 


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pally's acclaimed Monobox 
crane design remains a valu- 
able asset in the longer term, 
adds Mr Cowan. 

Another notable development 
has been the management’ bay- 
out of Mattersons of Rochdale, 
with Mr Kelvin Matterson, the 
managing director, leading the 
way to the ccmdnston of a deal 
for an undisclosed sum with the 
former owner, William Hudson. 
Finacial assistance was provided 
by the Industrial and Commer- 
cial Finance Corporation. 

Mr Matterson says that no 
major changes are planned 
following the recently com- 
pleted sale, since the workforce 
had already been virtually 
halved during the past two 
years and now numbers around 
150. 

Output at Matter-sons is now 
around two-thirds the level of 
two years ago. Its main pro- 
ducts remain overhead travel- 
ling cranes up to around 50 
tonnes, wire rope hoists of up 
to 32 tonnes and lifting jacks 
of up to 40 tonnes. 


Herbert Morris has also com- 
pleted a reorganisation of its 
sales outlets, having established 
around ISO locally based lif ting 
gear operators as suppliers of 
its products. Last year -foe com- 
pany introduced a. new electric 
chain hoist in foe 125 kg ' to 
three-tonne ' range, which it 
believes has matte some impact 
on the market 


Updated 

Mr Matterson says the UK 
market for the company’s pro- 
ducts is now fairly steady and 
that there are signs that pre- 
viously delayed investment 
schemes are going ahead. But 
there is little sign of any sharp 
improvement in demand. 

The major forces within foe 
industry remain NEI Clarke 
Chapman Cranes, particularly at 
the heavy end of the .business, 
and Herbert Morris, the Davy 
Corporation subsidiary which 
spans a wide spectrum of pro- 
ducts, some updated or replaced 
recently. 


The company believes that foe 
lighter end of the market, 
where it is particularly active, 
is now showing signs of improve- 
ment while demand for hand 
hoists has held up reasonably 
weft during the recession. 

In the middle range foe 
market for electric overhead 
travelling (EOT) cranes has 
been very weak and price com- 
■ petition severe, with many com- 
panies selling at cost to retain 
their work forces, Morris 
suggests. 

At the heavy end of the 
market the company has set its 
sights on four main areas; steel 
plants, power generation, ship- 
building and container handling. 
In the first the prospects for 
UK 'sales seem bleak but the 
company is bidding for work 
on a number of overseas steel 
projects, notably in India and 
other developing countries. 

On power generation It is 
encouraged by foe UK's nuclear 
power station programme and 
the demand it will create for 
heavy lifting equipment, while 
the recent success, in relative 
terms, of UK sfaipbuildjng, is 
seen as a potential area for 
growth. 

Finally, on container handling 
Morris accepts that there 
remains a considerable amntm* 


of excess container handling 
capacity in the UK and Europe 
but believes that will not last 
and sees opportuni ties here. The 
company has recently installed 
two container stacking gantries 
at a container marshalling area 
at Ipswich, Suffolk, 

Overall foe company is more 
firmly co mm it ted to heavier 
type of equipment, with around 
50 per cent of 11s turnover com- 
ing from this sector and about 
foe same from its light and 
medium-range activities. 

Stothert and Pitt of Bath, a 
specialist in dockside cranes, 
has recently won an order worth 
aropsd £5m to supply eight 10* 
tonne cranes and one 2 5-tonne 
crane for Calabar Fort in 
Nigeria. It has also been con- 
centrating on specialised crane 
work for offshore oil platforms 
— as have a- number of com- 
panies — particularly in the 
North Sea. 

The company cays this has 
been an important area since 
it involves higher technology 
work, with specific requirements 
by customers on safety and 
performance, giving higher 
added value to foe product 
Stothert and Pitt has 12 such 
cranes on order for the North 
Sea and other parts of foe UK. 



A mobile, hoist at work at Cawley Marine industrial, of Twtjford, Redding 


Major force 


Mannesman Demag, the Ger- 
man-owned company based at 
Banbury, Oxon, remains a major 
force in the crane and hoist mar- 
ket, with its wire rape hoists 
ranging in capacity from one 
tonne up to 80 tonnes and its 
cranes, many of them custom 
bufit, going up to around 150 
tonnes. 


M Qur experience is that foe 
whole of foe UK market, from 
light boosts to heavy cranes and 
even fork lift equpircrent. 
declined fairly evenly over foe 
past two years demand is 
now around half the level ex- 
perienced in late 1979," says the 
company. 

The result of this, it is sug- 
gested, is that suppliers have 
cut margins severely and in 
some cases foe quality of pro- 
ducts is suffering as a result of 
the use of cheaper components, 
with safety implications for the 
long term. 

Demag also points out that 


since most companies have only 
one EOT crane serving their 
manufacturing activity they are 
highly dependent upon its reli- 
ability, so the consequences of 
a long period of down-time for 
repairs could bo serious. 

During foe recession Demag 
has embarked on a programme 
of product improvement, con- 
centrating on consotidating and 
amplifying design, with the aim 
of reducing maintenance 
requirements. 

The company has also ex- 
panded its manufacturing activi- 
ties at Banbury, where an its 
UK products are manufactured 


with foe exception of motors and 
other minor ports which ere 
mostly supplied from Germany. 
The workforce is around 250. 

Demag has seen a slight up- 
turn in demand in recent mouths 
and believes there wfo .be a 
slow but steady increase in 
demand this year. This appears 
to be foe consensus of the indus- 
try. Many companies cairttousiy 
point out, however, 'that fob 
recovery is in their view by no 
means certain and could be - 
halted by a' number of economic 
factors. 


Lome Barfing 


Consumer sectors pose special problems 


New UK handling systems needed 


BANDUNG a high volume of 
goods In such consumer indus- 
tries as food, drink and 
retailing generally poses special 
problems for equipment manu- 
facturers and operators alike. 
But with the pressure on 
margins in these areas it is one 
management activity ■ where 
companies are increasingly 
focusing their attention. 

The need for companies to do 
to was spelt out by as official 
industrial report for the food 
and drink industries which 
suggested that "the evidence 
indicates that foe major areas 
of technical weakness, in terms 
either of inferiority or absence 
of UK machinery, lie in the 
meat, brewing, soft drinks, bis- 
cuits, chocolate, confectionery, 
ice cream and oils and fats 
sectors.” 

In margarine production, for 
example, it was suggested that 
machinery suppliers need 
increasingly to be able to 
offer complete systems of 
machinery whether based on 
foe use of the paper wrapper 
or foe plastic tub." The report 
added that “a complete line, 
not an assortment of machines 
from different sources, is what 
foe customer wants.” 


closer relationship at an early 
stage between food processing 
companies and machinery sup- 
pliers to help develop UK 
mechanical handling systems. 

In foe broadest sense 'mechaiii- 
cal handling in foe food 
industry encompasses all stages 
from the from to foe consumer. 
In these terms the industry is 
one of foe largest - in ' foe 
country and, as may be expected, 
there are as many different 
ways of meeting mechanical 
handling problems as there are 
companies. 


drinks producers as it is for 
foe food industry in generaL 
With such a high volume and 
bulky operation profit margins 
are traditionally low — thus 
making it vital to obtain the 
most effective throughput of 
materials. 


bottom of the vessel rather than 
rising to foe surface, cyiindrio- 
conical vessels allow foe yeast 
to be separated out from the 
bottom. 


A prime example of mechani- 
cal handling in the industry 
is given by the Bejam frozen 
food, group. Bejam has some 
180 freezer food centres 
throughout foe UK. Keelring up 
to 500.000 shoppers a week 
supplied with packs of frozen 
grocery products imposes a 
substantial strain on Bejam’s 
mechanical handling, storage 
and distribution systems. 


Unfortunately for British 
engineering companies many 
UK drink producers over the 
past decade have been forced 
to look abroad for their 
materials handling machinery 
to ensure that costs were kept 
to a minimum and efficiency 
maximised. In part this 
reliance on overseas machinery 
was forced on foe brewers in 
particular by the rapid growth 
in demand for lager throughout 
the 1970s. 


In foe retail sector in general, 
warehouse storage mid handling 
is increasingly seen to be as 
important an area as market- 
ing. But the way retailers deal 
with their warehouse problems 
varies considerably. 


Palleted goods 


In foe meat sector foe report 
pointed out that much of foe 
primary processing is along a 
conveyor system. It discovered, 
however, that processors pre- 
ferred Scandinavian machinery 
because such equipment linked 
together to form an integrated 
and highly automated system. 

If UK sources had been used 
the purchaser would have had 
to undertake the design and 
project management himself, it 
was discovered. Consequently 
foe report recommended a much 


Cold storage 

Freezer food centres south 
of the Thames and across to 
Wales are served by a 34,000 
cubic metres cold storage depot 
at Frimley Surrey. This is 
unusual, in cold store terms, not 
just tor its sheer size but in 
its use of five levels of racking 
to pack as much as possible on 
to a given floor area. 

Bejam. uses a flexible pallet 
system which helps ensure that 
racking Is used to full advan- 
tage. Operations are planned 
each day to minimise inter- 
ference between foe high-speed 
high-lifting fork lift -tracks used. 

Efficient mechanical handling 
of foe materials used in drink 
production is as important for. 
Britain's beer, spirits and soft 


The rapid swing to lager led 
to a bundling of orders for 
production vessels which UK 
sources had been unable fo 
meet But the problem with 
lager production is that the pro- 
duction process also requires 
longer storage times — and there- 
fore greater capital costs — than 
traditional beer production. 


The lengthy process of lager 
brewing— from malting to bottl- 
ing— has meant an intensifica- 
tion of brewers' efforts to 
improve materials handling. In 
foe brewhouse, for example, 
mash filters and “Uniter tons” 
are being introduced which lead 
fo significant increases in foe 
number of brews which can be 
achieved in a day. 

Perhaps the most significant 
development in lager equip- 
ment has been foe introduction 
of cylindri o-coni cal fermenting 
vessels to replace the tradi- 
tional square or horizontal 
types: Since lager production 
involves bottom fermentation 
using yeast which sink to the 


Fine Fare, for example, has 
its warehouses laid out along 
conventional lines with palleted 
goods on fotfotier racking, with 
the floor and first tier levels 
being used primarily for 
despatch and the two upper 
tiers for holding replenishment 
loads for foe first two levels. 

Storage of bulk goods is 
either in blocks or in drive-in 
racking. Warehouse staff respon- 
sible for fill i ng dispatch orders 
have long-fork electric trades 
which cany twp roll pallets. 
Removal of goods is carried out 
from side to side of the tier 
being used, thus providing a 
one-way system and obviating 
congestion. 

J. Sainstmry makes use of 
sophisticated computer analysis 
to help Its warehouse opera- 
tions. Computer printed forms 
give details of goods due in 
eadi day. Arrivals, mainly on 
pallet boards, are unloaded by 
pellet or “reach” trade, 
checked for quantity and 
quality and then stored. 

The e ssen tial point about aH 
retail systems, however, is 
speed and flexibility of opera- 
tion when dealing with the high 
volumes of goods bandied by 
a large multiple group. 


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Financial Times Wednesday April 21 1982 


INTERNATIONAL STORAGE AND HANDLING IH 




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Hazel Duffy looks at the lift truck sector 
hit by recession and automation 

More stress on 
value for money 


THE PAST year has been 
probably the most difficult of 
any experienced by the lift 
truck industry. The major 
influence is the recession, 
which has reduced demand for. 
capital equipment throughout 
the industrialised world. The 
users of lift trucks have fre- 
quently tried to squeeze a bit 
more life but of their existing 
equipment and postpone the 
date at which they make a 
replacement purchase. Prospects 
for recovery look weak at least 
until next year and even the 
more optimistic predict that, 
the recovery will be slow. 

. Another important influence 
on future demand levels .for 
lift trucks is the place of the 
product in chan ging .methods 
of materials handling. Auto- 
mated warehouses in partic ular 
are already affecting demand 
for lift trucks adversely. There 
is every prospect that this 
solution to storage needs will 
become increasingly popular, 
largely cutting off what bas 
been an important market for 
lift trucks. 

In the factory the future will 
also be increasingly dominated 
by assembly and manufacturing 
methods which will require 
sophisticated movement of 
goods and materials. Driverless 
tractors, guided trucks and 
fully automated aisle stackers 
are all products of the future 
which were shown at tire 
materials handling show in 
Paris recently. 

The lift truck, ■ however, 
retains its reputation for being 
a highly 'flexible vehicle for 
moving goods, materials, com- 
ponents, etc., around factories, 
warehouses, ports and many 
other areas of work. Flexibility, 
including the means to be used 
in and -out of doors, outweighs 
the relatively high cost of 
operating lift -trucks. Efforts 
are being made continuously 
to increase the productivity of 
lift .trucks, ■ by making them 
more efficient as well as more 
acceptable environmentally, in 
the battle for the lift truck to 
win out over handling methods. 

The industry has been aware 
for some timejthat the days of 
demand growing year, on year, 
have long since passed.. In the 
-industrialised" world demand is 
tdmoft entirely for replacement, 
winch to conditions at reces- 
sion -has led to dramatic fails to 
some markets. Most European 
markets have fallen by 15 to 20 
per cent to the past couple of 
years, a situation which has 
meant that suppliers are com- 
peting at very large discounts 
to list prices. 

Inevitably the market situa- 
tion has led to some rationalisa- 
tion. although surprisingly not 
as much as has been predicted 
by some experts. The multi- 
nationals have all survived, al- 
though some would have been 
happy to offload their lift truck 
interests if they could find 
buyers. Those manufacturers 
whose activities are predomin- 
antly in lift' trucks have been 
forced to re-assess their tactics 
to the face of substan tial world 
overcapacity. 

Low priced 

Hyster, the U.S.-based group, 
has employed the most cost- 
efficient methods of design and 
production to launch a low- 
priced lift truck taking on the 
Japanese. This is the Challenger 
which has a starting price of 
under £9,000. Produced to a 
highly automated plant to 
Northern Ireland, built at a coot 
of £25m, the track is reported to 
be selling well. Other manufac- 
turers, Clark Equipment, for 
instance, have introduced new 
models where the emphasis is 
on hi gh levels of reliability, ease 
of service, and low operating 
costs, which are key features in 
consideration -of the. 
customer. . 

Despite 'toe severity- of the 
recession the multi-nationals 
find ' themselves continuing to 
compete against nationally based 
ibamifactraers wfokSi have been 
'fighting hard to Europe to 
■maifttata their market shares. 


There has been some rationalisa- 
tion; to the UK the pressure of 
impests in recent years end the 
early onset of the recession has 
been very damaging for the indi- 
genous suppliers as well as the 
international .companies, based 
there. 

The two broad-range manu- 
facturers — Lansing and Coventry 
Climax — have rationalised 
extensively over toe past year 
and are now owned by the same 
person. Sir Emmanuel Kaye, 
following the sale of Climax by 
BL. Sir Emmanuel intends that 
the companies shall be run 
independently, however; the 
rationale for the purchase lies 
in maintaining a strong British- 
owned presence in the industry. 

The problems for this sector 
of the industry is to increase its 
international sales — in recog- 
nition of the fact that the UK is 
unlikely to be able to support 
act industry of this size on its 
own. LancerBoss, toe other 
major supplier, came very close 
to buying Climax as a means of 
increasing its product range. 
Now it is likely to form a joint 
venture or some type of associa- 
tion with another European com- 
pany to strengthen its product 
and market range. 

Numbers cut 

The chairman of LancerBoss, 
Mr Neville Bowman-Shaw, pre- 
dicted recently that toe under- 
lying unprofitability of most of 
toe industry will force much 
more rationalisation in toe near 
future: He maintains that 56.5 
per cent of the world market is 
accounted for by 20 manu- 
facturers. toe rest being split 
among more than 200, and 
predicts that toe numbers trill 
be reduced progressively until 
by 1990 10 manufacturers will 
account for 70 per cent of out- 
put 

Few experts would want to 
line themselves up with so 
specific a prediction but there 
is little disagreement that toe 
industry will become more con- 
centrated into a core of major 
suppliers. Just which companies 
these will be will depend to 
some on toe willingness of inter- 
ventionist governments to main- 
tain a presence in the industry 
and of multi-nationals such, as 
Caterpillar and Eaton' to con- 
tinue - supporting ‘ ah activity 
which at toe very least must be 
making a much smaller return 
than their mainstream interests. 

Japanese lift track companies 
seem to be in the process of 
consolidating their market 
share in Europe. In some mar- 
kets, that is France, where 
domestic suppliers notably Fen- 
wic, are dominant, that share 
is still no more than 10 per cent; 
but in the UK it is at least 15 
per cent Fears that the 
Japanese would swamp toe 
European market as they have 
other sectors have not yet been 
confirmed. In the UK market 
the -competitive pressures in 
the past eonple of years have 
been considerably greater from 
West Germany, to the extent 
that imports now take between 
40 and 50 per cent of sales. 

As the automation era dawns 
in certain areas of manufac- 
ture, toe need for toe traditional 
counterbalanced or reach truck 
for a huge variety of movements 
will still be there. Nearly all- 
suppliers report that the going 
is tough, though small special- 
ised manufacturers find that 
they continue to satisfy their 
customer requirements. Many 
customers, for instance, are able 
to meet at least part of their 
handling needs with low-priced 
pedestrian operated trucks. 

The lift truck industry has 
shown itself in toe past to be 
technically innovative . ; and 
strong on marketing. The "ques- 
tion now being put is whether 
some manufacturers’ trucks— at 
least in the standard ranges — 
have not been over-engineered. 
The success of companies like 
Toyota and Mitsubishi, which 
have concentrated bn good basic 
models, has reinforced Qus view 
among some European and U.S. 

companies. While the recession 
continues to bite the emphasis 
can be expected- to-be increas- 
ingly on value-for-money. 



.-v-; 




The flexibility °1 W* trucks has always Been one of 
their strangest selling points. The Hameek Ransomes 
L (above) is one of a Breed of fast and manoeuvrable 
electric trucks 



Automated warehousing plays a key role in giving good customer back-up 

Europe catching up in storage 


BMHB’s chairman 
Sir Jeffrey Petersen 


BMHB 
widens 
its net 


MATERIALS handling b 
frequently an afterthought on 
the part of Industry yet toe 
economies that can be 
achieved with methods that 
have been properly planned 
can he substantial. It was in 
recognition of this fact that 
toe British Materials Handl- 
ing Board was set up by the 
Government In 1979. Its brief 
was “ to encourage industry 
at all levels to become more 
aware of the importance of 
the economic, environmental 
and health advantages of 
greater efficiency in the hand- 
ling of industrial materials 
and finished products of all 
kinds.** 

Founder members of toe 
board included British Rail, 
toe Post Office. Boots, toe 
Ministry of Defence, BP, 
Woolworth and other large 
organisations. Contributions 
from these members, and. 
some Government money, 
have kept the modestly 
staffed board going. 

Now it has been decided 
that the board needs to widen 
its appeal to a much wider 
range of potential members 
who would provide all the 
operating funds, thus releas- 
ing it from any Government 
funding. On March 1 toe 
hoard appointed its first cha i r - 
man, Sir Jeffrey Petersen, a 
retired diplomat, to coincide 
with the ■ commitment ' to 
expand into' 1 -toe problems 
posed by materials handlin g 
for a larger cross-section of 
industry. 

Sir Jeffrey says the board's 
aims must be to “stimulate 
demand * for materials hand- 
ling and, where possible, to 
see that customers use British 
suppliers. Th* first meeting 
of the new board, for in- 
stance, brought together some 
of the major retailers and two 
manufacturers of hanging 
garment equipment to discuss 
the needs of the retailers and 
their reasons for • buying 
imported equipment 

Initiative 

The Board aims to co- 
ordinate some of the work on 
handling ’ which is being done 
In various organisations. The 
National Economic Develop- 
ment Office, for instance, has 
taken a look at sortation 
problems for the Post Office 
and the requirements of the 
British Airports Authority, 
following the Board’s initia- 
tive in raising the subject of 
their future needs. On a com- 
pletely different h a n d l i ng 
problem — the packaging of 
bricks and plasterboa rd f or 
the construction industry — 
the Board has managed to 
get the employers' body of 
the building trade to gather 
views from across the 
industry. 

The difficulty for any. such 
body in materials handling is 
the very wide field of 
activities involved.- The 
research and development 
working group of the Board 
■ (which, like all its other 
activities, operates on 1 a 
voluntary basis) has there- 
fore concentrated oh a few 

■selected and narrow tech- 
nical areas within the field. 

- Examples of studies being 
undertaken by various sub- 
groups include: pneumatic . 
handling of bulk particulate 
materials such as grain, coal, 
etc.; a campaign aimed at 
recommending a British 
Standard transit packaging 
label; production of a guide 
defining physical properties, 
of bulk solids; a survey 
determining the nature and 
magnitude of the problem of 
-dust control associated with 
ship loading and discharge — 

Materials handling and 
storage is an area where 
British manufacturers were 
well able to provide the solu- 
tions in the 1950s and 1960s. • 
Increasingly over the last 
decade, however, manufac- 
turers and distributors have 
gone abroad ' for their 
systems and equipment The 
task of the Board is to 
attempt to reverse- this trend 

nnri at the ftiwm time walcg 
industry much more aware 
of the advantages that can 
be gained from efficient 
methods. 

The address of toe Board 
is: IPS House, ffigh Street, 
Ascot, Berks. 

Hazel Duffy 


AUTOMATED and semi- 
automated warehouses are 
becoming an increasingly impor- 
tant feature of well-planned 
storage and distribution systems 
ju factories and individual ware- 
houses. In toe ideal state they 
will form part of -an Integrated 
system of highly automated 
assembly and manufacture. But 
most are being installed inde- 
pendently as a result of expan- 
sion of activities or simply 
because there is a need to 
replace toe existing system. 

The majority of installations 
have been in toe UB. and Japan 
but European manufacturers 
and distributors are recognising 
i the value of systems which can 
, afford more efficient storage and 
retrieval. The problem is, of 
course, that toey are expensive 
— a custom-built parts storage 
system for an automotive dis- 
tributor, for instance, costing 
perhaps £§m- 

An example of a highly 
sophisticated warehouse system 
for the mail order companies in 
the British Mail Order Corpora- 
tion was designed and 
engineered over a number of 
years to bring together toe 
latest in equipment and systems 
control. The Marti and distribu- 
tion centre near Manchester was 
opened in 1976 and three years 
later the high bay project, an 
integral part of toe centre, came 
into being. 

The entire flow of goods 
through the centre is controlled 
by computer; delivery vehicles 
are directed to specially 
designed receiving bays for 
unloading by telescopic con- 
veyors as well as fork lift and 
hand pallet trucks; toe mer- 
chandise is placed on pallets 
and moved to the high bay 
storage and retrieval area; after 
being checked by computer that 
it is within the weight limits of 



SSR&-55 


Part of the automated system installed by Demag, part of the German-mcned Mannesman n Den in g group, 
for the small ixirts store of Volksu-age n‘s new stores complex at Milton Keynes 


the storage system, the pallet 
proceeds to one of the ten aisles 
of 66-ft high racking; it is then 
routed via a spur conveyor to 
a crane pick up point which 
takes the pallet to be stored in 
a selected position. 

When required the crane 
transports the retrieved pallet 
to the output conveyor system, 
situated 39 feet above ground 
level, and it is then tracked 
for the rest of its conveyor 
journey in the 6ame manner as 
the input system, feeding into 
the packing department. A 
number of companies supplied 
equipment to the overall 
system, where the consulting 
engineers were Merz & 
McLeUan, ' ' toe - National 
Materials Handling Centre and 
a systems consultant. 

The Turin-based Fata group, 
part of Babcock International, 
has been involved in a number 


of automated and semi-auto- 
mated warehouse installations. 
In the UK for instance, it has 
put in several systems at ibe 
Leyland truck plant, and also 
at the Solihull plant for Land 
Rover, where a fully automated 
storage and retrieval system 
complements a high level of 
automation in the assembly 
area. Fata was also responsible 
for IBM's storage system at 
Greenock and has done a 
number of automotive instal- 
lations on the Continent. 

Demag, part of Mannesman^ 
Demag, the German-owned 
group, has also specialised in 
putting together automated and 
semi-automated warehouses. It 
has put in 56 in the UK since 
1969: installations this year 
include spare parts warehouses 
for Heron Suzuki GB at 
Crawley and Saab Cars at 
Northampton. Other recent 


installations include a fjm 
bulk paper store at Battersea 
for Her Majesty's Stationery 
Office and a £Jm system for 
Caterpillar at Dcsborough. 

The most sophisticated ware- 
housing systems are a fasci- 
nating combination of com- 
puterised control and un- 
manned equipment. But for 
many customers a combination 
of manually operated stackers, 
acting on the instructions of a 
computer, will bring the re- 
quired improvements kt inven- 
tory control and increased effi- 
ciency in meeting their 
customers' requirements, at a 
lower cost. 

The growing emphasis on a 
manufacturer haring the repu- 
tation of offering good back-up 
sendees has made advanced 
methods of storing and retriev- 
ing parts an essential element 
in maintaining international 


competitiveness. Few manu- 
facturers who have to answer 
urgent calls, perhaps from 

overseas, for vital spare pans 
can afford to ignore some 
element of computerised con- 
trol of storage. As well as 
reliability it offers savings in 
manpower and overall improve- 
ments in efficiency. 

This is not to say, however, 
that there have not been dis- 
appointments with some of the 
systems that have been 
installed, and most operators 
find that there are some snags 
to be ironed out before they 
are fully confident about the 
system. The target of the 
designers and equipment sup- 
pliers must be to ensure that 
as more of those systems are 
put in the drawbacks will be 
eliminated. 

H. D. 




777 



JUST RIGHT 
FOR TODAY’S 









The way things are today, any company 
investing in new plant or equipment must be sure 
that every single penny is wisely spent 

And a company purchasing a Datsun 
foridift truck can be certain to be doing exactly that 

Fora start, Datsun forklifts come from a 
division of the fourth largest vehicle manufacturer 
in the world; a manufacturer whose reputation for 
product reliability, value and low operational costs 
is world famous. 

And it is these qualities, among others, 
that you’ll find in the wide range of Datsun 
forklift trucks. 

A range that indudes trucks with load 
carrying capacities from 2,000 lbs to 9,000 lbs 
with diesel, petrol, LPG engines as well as battery 
eleettic 

They all come fully equipped with torque 
converter, overhead guard, back guard and much 
more besides. 


All models are also fitted with power 
steering as standard and there is a variety of 
attachments and substitution forks also available. 

The model illustrated below is the Datsun 
B02 series; a superb, battery operated truck in the 
4-6,000 lbs class-which carries a full, 2-year or 
4,800 hours Datsun warranty. 

Backed by the vast Datsun U.K. organisation, 
Datsun forklift dealers provide a full service and 
parts back-up with'their own service vans and 
Datsun-trained rhechanics for on-the-spot 
maintenance where and when it's needed. 

And, ever mindful of the customer's 
concern for cash-flow, Datsun also offers 
competitive rental and leasing schemes to save 
the tying up of capital. 

So, if you’re in the market for a forklift truck, 
take a look at the one with the Datsun name on- 
it means you can depend on it to give you reliable, 
economical service today and every day. 



is! 

fj 

IT 

-«aLL | 

pal , 

HS|n 

DATSUN 

foaij 1 

m 



See the New Datsun 
ROI Reach Truck Series 

1, 1.5 & 1.75 tonne. 

To be launched at the 
Storage, Handling and 
Distribution Exhibition. 

Earls Court Stand 37 

26th-3 0th April — =ss 




DATSUN 

o H 


DATSUN //l 


Datsun Plant&lndustrial Machinery Ltd, New Road,>Xbrthing, Sussex BN13 3 HD.Tel^Mbrthing (0903) 68561.and 642241 







S’g " Q ^ tend 5P»?ra 


Financial Times Wednesday April 21 1982 , l' 



INTERNATIONAL STORAGE AND HANDLING IV 




Internatio nal rivalry grows in the market for heavy handling equipment 




Dinosaurs Have their day again 


‘J- -m 


COAL'S resurgence in the de- 
veloped countries is spawning 
■new breeds of heavy handling 
machines which loom over the 

- industrial landscape like dino- 
saurs. ‘ 

. Heavy and cumbersome, they 
seem .to- make up in size and 
weight -for their lack of com- 
plexity; obsolete monsters in an 
age of'micfo-techiiology. 

Nothing could ■ be ' further * 
from the truth. Far from facing 
. extinction, -they are in increas- 
ing demand. Thanks largely , to 
the revival of cbal and the need 
?to transport ‘it. huge distances 
. over 4 and and sea. „ „ 

- ' Every stage in the mining, 

. transport and use of coal, -both- 
for power generation and for 
industrial heat, calls for. equip- 
ment which will minimise -the 
inconvenience of a fuel which 
is solid, bulky, and dirty. 

Wherever possible, coal users 
look for equipment which. 
. handles it as though it were 
a fluid. In the U.S., for example, 
'coal is pumped from the mines 
through pipelines in the form 
of slurry. 


Labour costs 


At the user end, too, it is 
made as fluid as possible, either 
hy being ground to a fine 
powder which can be blown 
through pipes into furnaces, or 
fed in- heavier consistencies- to 
furnaces - - -by -- pneumatic 
pressure-'- '--.- • • 

. At all stages of the movement 
atad handling of coal, a 'high 
premium is placed, on the need 
to be as automatic as possible, 
thus whittling .. down labour 
costs. ’ 

Some of the new equipment 
is -provided by companies which 
are traditionally linked to the 
coal industry. This is true of 
■the conveyor belts and the 
surface systems used to stack, 
blend and load coaL -j. 

- -in other cases, such as the 
pneumatic handling systems for 
-factories'or at the dockside, coal 
is .-being moved by technologies 
originally developed for moving 
other materials, -such as sand or 
graveL 

In the past' 12 months, the 
deraahd" for equipment at all 
stages in the use of coal has 
been on the increase, stimu- 
lating international rivalry 
between large established com- 
panies and presenting oppor- 
tunities or innovative entre- 
preneurs. 


The rivalry for this market 
also reflects the traditional j, 
strengths of different countries' J 
mining or engineering Indus- c 
tries,' as well as their engineers’ ( 
native flair. ' ... 

•British companies, for f 
example, are at least as good as ] 
theiroverseas competitors' when j 
it comes to making conveyor \ 
belts. Their expertise was ' j 
evolved underground 'in the j 
British coal fields and . h as ; , 
ensured them healthy overseas , 
-markets for handling. .coal as , 
wen as other minerals.* ' 

In the field of heavy re- 
. claim ers : and.- stackers/ British . ; 
companies tend to be over- 
shadowed' by competitors who 
have perfected their designs in 
large open-cast mining Indus- - 
tries, such as that in. _ West 
"Germany. "Consequently, even 
the National Coal Board, which 
tries to buy British wherever 
possible, has - , fiooetiines 
favoured equipment incorporat- - 
ing foreign designs. — 

There are signs, however, 
that this foreign dominance is 
coming to an end and that 
wholly-owned British, companies 
could soon be winning a greater 
share of orders for pithead 
installations in Britain. 

Where British companies 
-have : an indisputable lead at 
present is in devising . the 
'•pneumatic handling, equipment 
on ‘ offer to factories which 
want’ to switch to coal. One 
’reason for this may be that 
: British industry Has continued 
-'to bum proportionately ‘more 
coal than factories elsewhere m 
Western Europe. But this 
■ alone does not explain the 
British lead,- -which must also 
: be -due to individual engineer- 
[ -ing skills. 

in the -conveyor field, .the 
r leading British companies are 
Anderson Strathclyde and Cable 
Belt with - -overseas manufac- 
’ .turers led by. Krupp of West 
, Germany. Knrpp designed the 
1 -world's longest overland con- 
i veyor belt capable of s h i f ting 
5 phosphates 60 miles across the 
, Spanish Sahara. [It is cur- 
r rently believed to -be out of 
action because of political 
j instability.] ' ' 

^ However, Cable Belt, - based at 
s Ripley, Derbyshire, is now mak- 
i- ing the longest' arid second 
r longest single . flight conveyors 
l- in the world, for an Australian 
■- bauxite handling system: They 
s- are 18 miles and 12 miles- long, 
respectively.- : " 


The compact sees its most 
promising markets as the South . 
African and Australian coal- in- 
dustries; Zambia's uopper in- 
dustry; and Australian bauxite. 

A subsidiary of _ the I*aird 
group of companies, . Cable 
Belt says it made a 41 comfort- 
able^ profit on last year’s «0m 

turnover. However, to maintain 
its position it has found it 
accessary to Instal facilities to 
enable it to carry out the final ' 
stage ■ of assembly in "the 
customer country. 

Cable Belt's rivalry with 
Anderson Strathclyde will be 
tested in the twin drift mines 
at the Selby coalfield in York- 
shire. One of the mines will 
have a nrne-mile4ong conveyor 
supplied by Cable Belt; the 
other’s .conveyor will be sup- 
plied by Anderson. 

Other breeds of equipment 
will be needed to support the 
growing international maritime 
’ trade in coal A feature of the 
new coal ports will .be 
machinery to load and unload 
ships continually. Instead of the 
slower and more familiar grab 
systems- . 

One of the first continual 
ship unloaders has - been 
ordered in France for the 
port of Dunkirk The British 
company which is working hard 
to meet this market is Babcock- 
Moxey, part of Babcock Inter- 
national', based at Gloucester. 
It has designed a continuous 
unloader, consisting of a bucket 
wheel applied' to an elevator 
capable of emptying a ship at 
‘ two and a half times the speed 
of a mechanical elevator. 


city of 2,500 tonnes. 

Babcock's UK competitors are 
led by Adamson .Butteriey, a 
subsidiary of the broad-based 
Norcros group, and Bristol- 
based Strahan and Henshaw, 
owned by Dickinson, Robinson. 

Adamson Butteriey has sup- 
plied a continuous grab type 
ship unloader for the British 
Steel Corporation’s worts at 
Red car. With an 1981-82 turn- 
over of about £10m, Adamson 
claims to he making a slight 
profit and to have about two 
years work on hand. However, 
it admits that it would be in 
difficulty, without the orders 
from tiie National Coal Board, 
including contracts for half the 
surface handling equipment at 
Selby. - 

However, some of the prize 
NCB contracts have recently 
gone to the UK subsidiary of 


West Germany’s PHB Weser- 
butte. Early this year, it won 
the contract for. two circular 
blending beds for the Coal 
Board’s Grimethorpe Project 
Although oner of the British 
companies’ designs was as good 
if not better than PHB's, the 
latter’s price was substantially 
lower. 


This was mainly because, hav- 
ing a lot of experience in this 
equipment, it did not have to 
include the design costs, which 
are about 10 per cent of the 
total. Four-fifths of the work 
will be carried out in the UK. 


However, the high quality of 
British companies’ designs 
makes it likely that in future 
fewer of these prize contracts 
will go abroad. 



Maurice Samnelson 


A coal 


Italy sees yet another major advance in car production 


Fiat’s robots take on engine assembly 

- ... 1. |.« nr, Ml 


New projects 


Babcock-Moxey is also one of 
a number of British, and Euro- 
pean companies which have 
supplied surface handling equip- 
ment to the National Coal 
Board for its large new projects 
in Yorkshire and the North 
East. In 19S0-81 it also won 
valuable contracts at the Hong 
. Kong Castle Peak "A" coal-fired 
power station; and at Australia’s 
Hay Point coal port Other 
handling - systems are being 
designed by Babcock for the 
Mexican fertiliser industry and 
for steel works in Brazil. 

However, it is frustrated at 
not winning even more fabrica- 
tion work in the UK. In 1980, 
it. assembled about 1,000 tonnes 
of steel compared with its capa- 


THE LAUNCH of -the “ Robo- 
gale ” system to build: Strada 
car bodies' at Fiat's Rivalta plant 
in the late 1970s ? may be seen 
in history as the .be ginn i n g of 
the end for the. production 
line," Sig Paulo Scolari, the 
company's technical director, 
observed late last year.^ 

With Robogate arrived a 
system whereby a. central com- 
puter controls: trolleys which 
deliver body panels to several 
robots grouped around a “gate 
where the car's body is welded 
together. and the robots made to 
work as a team. 

Sig -Scolari was speaking, 
however, after the unveiling of 
vet another major step in 
robotisation— one which- is revo- 
lutionising Fiat’s approach to 
its handling of manufacture- of 
the other principal car com- 
ponent — the engine. 

. The LAM (standmg for 
asynchronous engine assembly) 
system which went on stream at 
Fiat’s Mirafiorl plant last year 
dispenses almost entirely with 
the conventional engine produc- 
tion line. That it has not dis- 
appeared completely Is due to 
the fact that the engines cur- 


rently being built .were not 
specifically designed for the 
process. But the coming gener- 
ation of engines is being based 
on a modular design principle 
which wall allow, a wide range 
of engines to be built by robots 
under the control of computers. 

LAM cost Fiat between £8m 
and £10m to develop and insfcaL 
Like Robogate it depends on 
computer-controlled trolleys 
moving - components ‘ for- 
assembly to work stations. The 
•trolleys, 37 of them moving on 
a trade 5 miles long, serve- 10 
islands each consisting of 12 
workstations. Eleven are used 
for production, the twelfth for 
rectification. 

Assembly on the current 
engines is carried out by 
workers. But space has been 
left for robots to replace them 
when the new engines are 
introduced. 

Each trolley collects a 
magnetic card bearing instruc- 
tion for which engine version is 
to be built, then picks up the 
blocks and crankshafts for two 
engines to he delivered to the 
first work station. Each 
“island” of work stations is con- 


trolled by a micro-computer 
whidi receives its instructions 
from three central computers 
overseeing the entire system. 

As each assembly operation 
is completed,, the trolleys whisk 
the engines to the next phase. 

Because the work stations at 
each island carry, out the same 
tasks, workers can go at their 
own pace and even take a break 
without disrupting the process, 
as would happen- on a conven- 
tional production line, 


Bottlenecks 


There are still potential 
bottlenecks in the four transfer 
■lines used -for a series of 
simple operations such as the 
tightening of - • cylinder head 
bolts. But these too are dis- 
appearing. 

The benefits of such a system 
have already become apparent 
la full production, just 350 
workers are required to build 
1,500 engines a day on a double 
shift 

Most significant however, is 
the great flexibility of the 
system. That has become really 
important because of the tre- 


mendous number of versions of 
one particular engine which a 
manufacturer as required .to 
build in order to meet varying 
exhaust emission and other 
legislation and market prefer- 
ences. 

In the case of the engines 
being processed by LAM some 
110 different versions are called 
for. Before LAM the speed of 
the entire production, process 
was necessarily geared to the 
most complex and expensive 
version. With LAM »hat is no 
longer necessary. •. - - - 

There is little prospect of this 
level of complexity in specifica- 
tion decreasing. On that basis, 
says Fiat, the computerised 
robot control of this major 
aspect of car manufacturing is 
not so much desirable- as neces- 


The system was developed by 
Comau, Fiat’S industrial equip- 
ment and planning subsidiary. 
Comau already has a wdUr 
established arm for selling its 
technology elsewhere in the 
industry. . 

It has been talking to other 
manufacturers interested in 
taking the LAM system, 


although so far no eonipletea 
sales have been announced. But 

given other side 
system, such as a halving trf 
engine rejection ratevit-seems 
unlikely either that it wiU nat 
find purchasers, or Uat other 
manufacturers wiU not develop 
their own technology along the 
same -lines. - • 

Meanwhile -Flat is pressing 
on with further .steps in auto- 
matic handling of its production 
processes. These : include a 
seeing. robot which isbeingfised 
initially to bolt hinges to=Strada 
doors and designed to do the 

job in 18 seconds: ag^wt 48 

seconds by hand: ' . 

But that, suggests Fiat, is just 
a first step. The seeing rebate 
will move on to perform mudi 
more complicated, tasks. 

This year about 100 robots are 
-being, added to Fiat's core of 
• 300. To the Robogate “ gates, 
for example; are being added 
slides' for yet another set of 
robots to work. These will allow 
•the bodies of two. . entirely 
- different cars to be.bullt at the 
same “gale.” '•'••' y 

John Griffiths 


BSC* 













Financial Times Wednesday April 21 1982 


17 


GARDENS TODAY 


Shrubs— a list of winners 


BY ROBIN LANE FOX 


HAVING NAMED my top ten 
alpine plants last week, 1 have 
been asked to name my top .ten 
garden shrubs. 

The. request comes' from a 
reader, who may not be very 
interested in planting what I 
suggest He has a list, he says,, 
wfucn Arthur HeHyer once pub- 
lished of his own top ten, and 
he would like to know where; if 
at all, we agree. 

This puts me on my mettle. 
I do not recall the Hellyer list, 
and 1 have no indication of its 
date. It might go back before 
my lifetime, let alone my in- 
terest in garden plants.. I will 
assume it was earlier than, say. 
Potentiiia Red Ace, but not so 
early as Hypericum Hidcote 
(the 19305). 1 will also assume 
that it only picked plants which 
wiH grow equally on acid soils 

and lime. That excludes Camel- 
lia Donation, white rhododen- 
dron. Loderi and all mann er of 
pale azaleas. But it keeps me 
on the ground which I know 
best. 

The winner, for my money, 
has to be the Philadelphia. I 
am not choosing plants which, 
ideally, we would all like to 
grow welL They must be easy, 
on my definition, and hardy in 
all but the worst of the recent 
winter. I have never killed a 
PhJladeJphus or Mock Orange 
Blossom, and I doubt if any 
sensible gardener could. I wans 
it, of course, for its heavenly 
scent, as powerful as a tan- 
gerine’s in late June and July, 
when the bushes are covered 
with their white flowers. 

No variety is less than good, 
but perhaps I should name the 
broad, single-flowered Belle 
Etoile as my favourite. The 
cupped Bowers have a punple 


stain in their centres. Prune 
them- all as soon as they have 
flowered, ■ and use them when- 
ever you can. 

They are hard-pressed, how- 
ever. by many viburnums and 
here, too, scent tips me in 
favour of the winter-flowering 
form, called Bodnantense Dawn. 
Its season is long and Us vigour 
is' beyond 'question, as it flowers 
during quite sharp frosts. About 
7 ft high' and 4 ft or 5 ft wide, 
ft is a hardy shrub and its white 
flowers, again, are -touched in 
the bod with pink. The. scent is 
slightly peppery, and nearly 
makes me want to sneeze. But 
it grows almost anywhere, and 
multiplies by young suckers. 

Excluding tire small shrubs, 

I would turn next, to one or 
other of my favourite buddelais. 
I hope the bad winter has tot 
soared you off the most ele- 
gant garden form, die lavender- 
blue flowered variety, with 
grey leaves which sells as Fal- 
low! ana Loch inch. With the 
slight shelter of a south or west 
e speck the bushes I know all. 
seem to be alive somewhere 
down their clutter of dead 
wood. 

. If you rule this one- out I 
would take Altemifolia instead, 
the variety with long, drooping 
wands of pale lavendar flower 
in July. It will grow as a small 
tree or against a walL I prefer 
them both to the coarser 
autumn hybrids. 

It wild take more than one 
weird winter to shake my love of 
Ceanotbus. too. Here, the older 
plants in my area seem to have 
died, every one of them. But 
new ones grow quickly, and. 
although I change my favourites 
every three years or so. I would 
take the deep blue Cascade for 


a warm wall, because 4ts flower 
is so profuse and the colour 
so pure. To atone for its tender- 
ness, would give fifth place to 
variegated Dogwood, or the 
form of cornus alba with the 
longest name in the list. This 
marvel Ions shrub will mix with 
anything and even redeems the 
coarser sort of purple foliage. 
I like it best in half shade, 
competing with wild flowers, 
but it is a good foil to the old - 
fashioned roses in full sun. 
It appreciates a rich soil. 

I would have to name a 
hydrangea and, now that I know 
how it likes lime, I would choose 
the huge felted leaves and big 
heads of blue-white “ lace caps" 
of flower on the form caUed 
Villosa. I grow it on an east 
wall, where it survived the 
winter, as did other young ones 
on open ground. It is a strong, 
rapid shrub of great quality, a. 
first choice for any shaded wall. 
Sometimes the frost touches the 
leaves in spring, but the effect 
is only skin-deep, and soon dis- 
appears. 

I now realise the hopeless- 
ness of my task. Dozens of 
shrubs press equal claims and 
I would like, at some point, to 
be sure of agreeing with my 
senior colleague Would the 
Hellyer list have run to a 
Deutzia, and what about those 
violet-flowered Abultllons which 
he likes in his southerly gar- 
den bat which have died twice 
in the last five years on my 
Oxfordshire slopes? I had 
better have an evergreen, and 
scent once more inclines me to 
the indestructible winter flower- 
ing Mahomia Japonic*, whose 
sprays of acid yellow flowers 
smell deliciously of lilies-of-Lhe- 
valJey. It grows anywhere, but, 
if you treat it weU, its leaves 


wear a marvellous bloom 

We must, surely, have a lilac 
and I will take the sky-blue 
Firmament, single-flowered but 
an ethereal colour, which 
flowers in huge trusses. The 
scent, again, would run far and 
wide, as it does off the com- 
mon but necessary Ribes. The 
blood-red King Edward form is 
not the only good one, and I 
am tempted by the pale Tyde- 
man’s white. But it has such a 
richness of colour that I forget 
its commonness and confess to 
a love for the scent of young 
blackcurrants, which rises from 
its leaves in spring. It, too, will 
grow anywhere, in sun or shade. 

I am avoiding the low- 
growing shrubs, partly because 
those glorious cist us are not 
always hardy. I am short of 
autumn colour, and bow to my 
family's taste in dropping, after 
argument, the cut-leaved Gol- 
den Elder. But Ruhus Tridei 
Benenden is too elegant in 
flower during May and too fresh 
in leaf and stem thereafter for 
me to leave it out. It is another 
white, I grant you, but this 
distant child of the bramble is 
so firm and strong that I would 
want it in any light position. 

Last, but in no way least. I 
round off with a magnolia. 
White again, the pure form of 
soulangeana called Alba wins 
over the open-pet ailed flowers 
of stellata, and its many hybrids. 
This is the one with the long 
flowers, like white candles an 
over the bush before the leaves 
appear. This spring, it has 
been a miracle, ignoring all the 
recent snow and coinciding with 
a warm break in the weather. 
Whatever you think of my white 
and scented nine before it, you 
surely cannot exclude this 
exquisite shrub from the list. 


TELEVISION 


1X30 pm News After Noon. 
12.37 Regional News for England 
(except London). LOO Pebble 
Mill at One. L4S&00 Over the 
Moon. 2.15 Racing from Chelten- 
ham. 3.53 Regional News for 
England (except London). 3.55 
Play School. -L20 Scooby Don, 
Where Are Yon? 4.40 Hay Away. 
5.05 John Craven's Newsround. 
5.10 A Little Silver Trumpet. 

5.40 Evening News, Weather- 
man. 

6.00 Regional News .Maga- 
zines. 

6.25 Nationwide. 

6-50 Young Musician of the 
Year. . The final of the 
piano class. 

7.30 Film: “ Swallows - -and 
Amazons,” (1974) starring 
Virginia McKenna and 
Ronald Fraser. 

SLOT A Party Political Broad- 
cast by the Conservative 
• Party. 

9.05 News, Weatherman. 

9.30 Rough Justice - .(last, in 
series): The Case of 
“Little Boy Blue." 

10.00 SportSnight: World 5 Ice 
Hockey Championship 
from- Helsinki. USSR" v 
U.S ' International Box- 
ing: Charlie Magri v Ron 
Cisneros. 

10.50 A Question of Girilfti A 
reconstruction in three 
parts of the case surround- 
ing Mary Blandy (1). 

11.45-11.50 ' News - Headlines. 
Weatherman. 


Chris Dunkley: Tonight’s Choice 

It would be difficult to sustain a complaint about narrowness 
of choice on television tonighL - BBC1 screens the piano final of 
the Young Musician of the Year. Today's winner gets £400 and 
competes on Sunday against the winners of the string, wind and 
brass sections for the title itself. The subject of 100 Great 
Paintings on BBC2 is Goya’s “Naked Maja," surely one of the 
most uncannily undressed portraits ever painted. 

Chronicle is a repeat of last yea r's programme about the 
discovery of the wreck qf Henry VHTs galleon Mary Rose which 
sank in the Solent in 1545. Tomorrow night a new programme 
brings the story up to date and in September the cameras go 
back for the lifting of the fabulous wreck. Part 2 of I Remember 
Nelson on ITV delves back to the time three years before 
Episode 1 when Nelson and the British fleet sailed into Naples 
after the Battle of the Nile. Nelson meets Emma for the first 
time and this part of the story is told from the viewpoint of 
Sir William Hamilton. 

If the last Rough Justice on BBC1 is as impressive as the 
first two, this will have been a quite remarkable series. After 
two claims of wrongful conviction, for murder, tonight's 
programme questions the conviction of John Walters for 
assaulting a young girl. 


10.2ft-10.45 am Gharbar. 
1L00-1L25 Play School. . • • 
5JL0 pm Cloister. 'to -Cloister? 
(Parti). 

5.4# Hawk of the Wilderness. 
5-55 The Saga of Noggin the 
Nog. 

6.05 Langley South. ' 

6.35 The Ascent of Han. A 
personal view by J. 
Bronowskl. 

7.25 One Hundred Great Paint- 


ings. 

7.35 News Summary with sub- 
titles-' 

7.40 The Master Game. 

8.10 Chronicle: The Wreck off 
Ifce Mary Rose. 

9.00 Butterflies. 

9.30 The Woman in White. 

10.25 TAndran Mill Glass. 

10.40 Parly Political Broadcast 
by (he Conservative Party. 

10.45-1L35 Newsnight 


LONDON 


9.30 am Barney Google and 
Snuffy Smith. 9.40 The World 
We Live In. 10.05 The History 
Makers. 10.30 Einstein. 1L25 
Paint Along with Nancy. 11.55 
The Bubblies. 12.00 The Munch 
Bunch. 12.10 pm Rainbow: 
“ Hanging On." 12.30 Play it 
Again. 1.00 News plus FT Index- 
L20 Thames News. L30 Crown 
Court. 2.00 After Noon Plus. 
225 Racing From Epsom. 3.50 
Definition. -L20 Animals in 
Action. 4.45 Murphy's Mob. 5J5 
Mr Merlin. . 

5.45 News. 

6.00 Thames News. 

625 Help! 

7.00 Where There’s Life . . . 

7-30 Coronation Street. 

8.00 Secombe with Music. 

9.00 I Remember Nelson. 

10.00 Party Political Broadcast 
by the Conservative Party. 

10.65 News, followed by Thames 
. News Headlines. 

10.50 Midweek Sports Special 
In the European Cup 
Aston Villa faces Ander- 
leobt in Belgium, and 
CSKA Sofia meets Bayern 
- . ■ Munich in West Germany: 

British hopes in the Cup 
■ Winner's Cup rest with 
Spurs in Barcelona. 

12.00 Superstar Profile : 

Catherine Laporte Cbolen 
talks to Steven Spielberg. 

Ii30 am “Sit Up and Listen, 
with Dr Joseph Needham. 

t Indicates programmes in 
black and white 


All DBA Regions as , London 
except at . the following times: 

ANGLIA 

9.30 am Cartoons. 9.35 The Joy of 
&ach. 10 .35 The New Fred snd'Bamay 
Show. 1i:» A Story of TuiankTismun. 
11.50 Watioo Wattoo. 1.20 pm Anglia 
Mmm. 5.15 Happy Days. 6.00 About 
Anglia. 6.35 Crossroads. 10.05- News 
'allowed by Anglia Late News and 
Weather Forecast. 12.15 am The Big 

CENTRAL 

9.20 am 3*2-1 Contact. 9.50 Venture. 
10.15 Pro-CBlabrity Angling. 10.40 The 
Electric Theatre Show. 11.10 Big 
lihaimia. Little Shaniua. . 1.20 pm 
Central News. 6.15 Radio. 6.00 Crosa- 
wads. 6.25 Central Nows.’ 10.05 News 
it Ton lollowad by Central News 
Headlines. 11-45 Replay: Mannix: 
'* Desert Sun," starring Mike Connor*. 


GRANADA 

' 9.35 am Village of the Rain Forest. 
10.00 Wednesday Matin an. 1.20 pm 
Grans dr Reports- 1-30 Exchange Flags. 
5.15 Mr Marlin. 6.00 This la Your 
Right. 6.05 Crossroads. 6.30 Granada 
Reports, 12.00 The Odd Couple. 


HTV 

9.40 am Beachcombers. W.0S Mr 
Mragoo. 10.10 The Incredible Hulk. 11.00 
Sesame Street. 1.20 pen HTV Naws. 
330 The LHd That'a Left. -5.16 Private 
Benjamin. 6.00 HTV News. 6.35 Cross- 
reads. 10.36 HTV Hew. 11.45 Ladies' 
Man. 12-15 am Weather. 

HTV CYMRU/WALES— As HTV WEST 
except: 1Z0Q-12.10 Ty Bach TWT. 4L2D- 
4.50 Mr Merlin. 4JS05.15 Doctor 
Sriwgwl. 6.00-6.16 Y Dydd. 6.15-6-35 
Report Wales. 


TSW 

9.30 am Sally and Jake. 9.40 Sesame 
Street. 10.40 Film: " The Oracle." 
UD pm TSW News Headline*. 6.15 
Gus Honeybun's Magic Birthdays- 5.20 
Crossroads. 6.00 Today South West. 
6 30 rTsIo Views. 6.40 Sports weak. 
10.52 TSW Lata Now*. 1Z2S am 
Postscript. VL30 South Weat Weather 
and Shipping Forecast. 


TVS 

9.35 am Untamed World. 10.00 
Animated Classics. IflJW Bailey's Bird. 
11.15 The New Fred and Barney Show. 
11.40 European Folk Talaa. 1.20 pm 
TVS News. 3.50 Definition. 5.15 Raiiio. 
5.30 Coast to Coast. 6.35 Crossroads. 
10.06 News. . 12.00 -Jazx and Blues. 
12JS are Company. 


TYNE TEES 

9-20 am The Good Word. 9J5 North 
East News. 9.30 The Nature of Things. 
10.16 Kum Kum. 1035 Cartoon Time. 
10.46 Hopalong Cassidy. 11.50 Sally 
and Jake: " On the Farm." 1.20 pm 
North Enr News. 1.25 Where the Jobs 
Are. 5.15 Private Benjamin. 6.00 North 
East News. 6.02 Crossroads. 6-25 
Northern . Lite. 10.35 North East News. 
12J» Pavilion Folk. 12J25 am For the 
Deaf. 

YORKSHIRE 

3-30 am Sally and Jabs. 9.40 Sascgia 
Street. 1040 The New Accelerators. 
11.05 Animated Classics. 11.06 The 
Undersea Adventures of Captain Nemo. 
1.20 pm Calendar News. 5.15 Private 
Beniamin. 6.00 Calendar.' 6.35 Cross- 
roads. 11.45 The Living Lcgenda ol 
Jazz and Bluos. . 


(5) Stereophonic broadcast 
(when broadcast on VHF) 

RADIO 1 

i.OO am As Rariio 2 7.90 Mike Read 
iludinq 7.45 Action Special. 9.00 
non Bates. 11.30 Paul Burnett. 12.30 
t Nawsbeat. 2.00 Stuvo Wnght. 4.30 
irr Powell. 7.00 Radio- 1 Mailbag. 
0 David Jensen. 10.00 John Peel (5). 


RADIO 2 

5.00 am Nick Page (S). 7.^0 Ray 
gore (S): 10.00 Jimmy Young (SJ. 
.00 Gloria Hunnllorri (SI including 
15 Sports Desk. 2.00 pm Ed Stewart 
i) including 2.45. 3.45 Sports Desk. 
M David Hamilton (S) Including 4.45 
mns Desk. 5.45 Nows, Sport. 6.00 
hn Dunn (S> including 6.45 Sports 
ask. 8.00 Alan Dell with Danco Band 
tys. 8.30 Among Your Souvenirs (S). 


RADIO 


9.15 Semprlnl Serenade (S). 9.56 

Sports Desk. 10.00 Tern. Manna rd. 10.15 
Cider ‘N‘ Song with the Yettles. 10.30 
Hubert Gregg. 11-00 Brian Matthew. 

12.00 Midnight Now* room. Weather, 
Motoring information (Stereo Irom mid- 
rtighi). 1.00 am Encore (SJ. 6.00 You 
and tha Night and the Music (S). 

RADIO *3 

B.B5 am Weather- 7.00 News. 7.05 
Your Midweek Choice (S). 8.00 Nev^. 
8.05 Your Midweek Choice (S). 9.00 
News. 9.95 This Week's Composer (S). 

10.00 BBC Northom Symphony 
Orchestra (5). H-lO Apollo's Banquet 
(S). 12.05 pm Sibelius and Sallinen 
(SI. 1.00 News, l.os Concert Hall (S). 

2.00 Music Weekly (S). 2,50 French 
Songs (S). 3 JO Stuttgart Chamber 


Ore host ra (S). 4.00 Choral Evensong 
(S). 4.55 News. S.00 Mainly (or 

Pleasure (S). 7.00 Genas, Mind and 
Culture (5). 9.00 Music of Eight 

Decades (S). 835 The Living Poet. 
9.25 Concert (SJ. 10.10 Mr Blseer in 
Sicily. 1030 The Apotheosis ot Lully 
(S>. 11.00 News. 11.05-11.15 Britten 
Conducts Grainger (S). 

RADIO 4 

6.00 sm News Briefing. 6.10 Farming 
Today. BJ25 Shipping Forecast- 6 JO 
Today. B.33 Yesterday m Parliament. 
8.57 Weather. Travel. 9.00 News- 9.05 
Midweek: Henry Kelly (S). 10.00 News. 
10.02 Gardeners! Question Time. TT«30 
Dally Service. 10.45 Morning Story. 

11.00 Naws. 11.03 Baker’s Dozen (S). 

12.00 News. 12.02 pm- You end Youart 


. TL27 The Other Sids of Silence (S). 
12.56 Weather. Travel, programme 
news. 1.00 The World at One: News. 
1.40 Tha Archers. 1-55 Shipping Fore- 
cast. 2.00 Naws. 2.02 Woman’s Hour. 

3.00 News. Travel. 3.02 Afternoon 
Theatre. 3.47 Time for Verse. 4.00 
Newa. 4.02 Pleasures of the Table. 4.10 
Tha Right to Roam. 4.40 Story Tima. 

5.00 PM: News Magazine. 5.50 Shipping 

Forecast. 5.55 WealhBr. programme 
news. 6.00 News, including Financial 
Report. 6.30 Frank Muir Goes Into . . . 
Cookery (S), 7.00 'News. 7.06 The 
Archers. 720 Checkpoint. 7.4S A World 
in Common. 8.16 Voices In Harmony 
(S). 8.45 Edgar Hoover— Fallen Idol. 
9.30 Kaleidoscope. .Arts magazine. 9.59 
Weather. 10;00 The World Tonight: 
Naws. -KJ .30 . Detective. 11.00 A Book 
at Bedtime. 11.15 Tha Financial World 
Tonight. 11.30 Today in Parliament. 
12.00 ' Ncwsl Weather. 12,15-12.23 am 
Shipping Forecast, Inshore Waters 
Forecast. - 


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FT COMMERCIAL LAW REPORTS 


Interest-free commercial loan not a ‘settlement’ 


INLAND REVENUE COMMISSIONERS v LEVY 
Chancery Division: Mr Justice Nourse: April 6 1982 


WHERE A shareholder makes 
an interest-free loan to a com- 
pany for ordinary commercial 
purposes and not for altruistic 
reasons, the transaction is not 
a u settlement ” for income 
tax purposes, and does not 
render the shareholder liable 
for tax on Income received by 
the company on investing the 
money lent 

Mr Justice Nourse so held 

when dismissing an appeal by 
the Crown from tbe decision of 
Special Commissioners that Mr 
Ralph Levy was not personally 
liable for tax on income derived 
by a company after investing a 
loon made to it by Mr Levy. 

Section 446 of the Income and 
Corporation Taxes Act 1970 pro- 
vides: “ (1) ... as long as the 
terras of any settlement ... arc 
such that (a) any person has . . . 
the power ... to determine the 
settlement . . . any income aris- 
ing under the settlement . . . 
shall be treated ... as the 
income of the settlor 

Section 457 provides: ** (1) 
Where . . . income arising under 
a settlement . . . is . . . pay- 
able ... for the benefit of any 
person other than the settlor, 
then . . . the income shall be 
treated for the purposes of sur- 
tax as the income of the 
settlor . . . 


HIS LORDSHIP said that Mr 
Levy was the sole beneficial 
shareholder in a company called 
Parkspa Securities Ltd which 
carried on the trade oE dealing 
In stocks and shares. It had for 
many years been The practice of 
Mr and Mix Levy, either 
individually or jointly, to fund 
Parkspa by way of various loans 
on terms that they would be 
interest-free and repayable on 
demand. 

On May 30 1973 Mr Levy made 
a loan to Parkspa of £3.33m. The 
money was lent to be used for 
the general purpose of Parkspa’s 
business. It was to be repayable 
on demand, but subject to the 
proviso that if, when repayment 
was demanded, the funds were 
invested in a form which pre- 
vented Parkspa from malting 
repayment, then it should be 
deferred for up to six months. 

Repayment of the loan was 
made by October 30 1973. 
Parkspa derived income from 
the use of the £3 -33m between 
May 30 and October 30 1973. 
The Crown raised, alternative 
assessments on Mr Levy in 
respect of that income under 
sections 446 and 457 of the 
Income and Corporation Taxes 


Act 1970. It claimed that the 

loan was a “ settlement " for the 

purposes of the income tax Acts, 
and that the income derived by 
Parkspa on its investment was 
accordingly to be treated as the 
income of Ur Levy and not of 
the company. 

On the face of it, that was an 
extraordinary claim for tbe 
Crown to have made. An 
interest-free loan to a company 
in which the lender was the 
sole or substantial shareholder, 
or of which he was merely a 
director with no significant share- 
holding, was an everyday trans- 
action in the commercial world. 

As such, it would invariably be 
regarded as being made for good 
commercial reasons divorced 
from altruism or charity. 

The Special Commissioners 
found that the transaction did 
not involve bounty on the part 
of Mr Levy and they rejected the 
Crown’s claim. The Crown now 
appealed. 


In section 454(3) of the 1970 
Act, “settlement" was defined as 
including “any disposition, trust, 
covenant, agreement or arrange- 
ment." The loan was certainly a 
disposition, but the question was 
whether it was a disposition 
within that definition. 

In IRC v Plummer [19S0] AC 
896, the House of Lords held that 
a transaction could only be with- 
in the definition if it contained 
an element of bounty. 

In Chifm r Hochstrasser [1981] 
-4C 533 , Lord Roskill said at page 
555 that there was a distinction 
between cases where the recipi- 
ent of a benefit had accepted 
some obligation which be had to 
perform, and “those cases where 
the recipient benefits without any 
assumption by him of any corre- 
lative obligation.” 

The Crown submitted that 
there was an element of bounty 
in the present case in that 
Parkspa benefited from the loan 
without assuming any correlative 
obligation for tbe payment of 
interest or otherwise. 

Lord Roskill .was not saying 
that something which would 
otherwise be a commercial trans- 
action devoid of any element of 
bounty would cease to be one 
merely because tbe person who 
was at the receiving end of it 
did not assume any correlative 
obligation. 

The law was that before a dis- 
position, trust covenant, agree- 
ment or arrangement could be a 
settlement within section 454(3) 
of the Act, it must contain an 
element of bounty. A commer- 
cial transaction devoid of any 


element of bounty was not 
withiu the definition. The 
absence of any correlative oblig- 
ation on the part of the person 
who was at the receiving end of 
tbe transaction might be 
material, but was not conclusive, 
in determining whether it con- 
tained an element of bounty. 

If those principles were 
applied to the facts of the present 
case, particularly to the Special 
Commissioners' finding that tbe 
transaction did not involve any 
bounty on tbe part of Mr Levy, 
it was clear that there was no 
disposition, agreement, or other 
transaction within section 454 
(3). 

It was a simple case of a com- 


mercial transaction devoid of 
any element of bounty, and im- 
material that Parkspa did not 
assume any correlative obliga- 
tion for the payment of interest 
or otherwise. 

On the whole of tbe material 
before them, the Special Commis- 
sioners could have come to no 
other conclusion. The appeal was 
hopeless and should be dismissed. 

For the Croim.* If. A. Ilorritt 
QC and John Mummery (Soli- 
citor, inland Revenue). 

For Mr Levy: M. P. Xolan QC 
and Andrew Thornhill ( Ltnfc- 
laters and Paines). 

By Rachel Davies 

Barrister 


Little Robert to thwart 


Piggott repeat 


RACING 

BY DOMINIC WIGAN 


DENMORE did the trick for 
Epsom’s most successful rider, 
Lester Piggott, in last year’s 
Great Surrey Handicap and it 
is interesting to find that the 
Moulton horse has become a 
late booking for the champion 
jockey in today’s renewal of the 
six-furlong event. 

Denmore, a Charlie Nelson- 
trained chestnut, wbo a year ago 
had a length to spare over 
Alpine Rocket, seems sure to 
make a bold bid if repeating 
that form or reproducing the 
performance which earned him 
third place behind Enchantment 
in Ayr’s Tote Sprint Trophy. • 

He has, however, gone up 16 
lhs in the weights since last 
year’s race and this could prove 
too severe an anchor in the 
dosing stages. 

Two beneath him in the handi- 
cap whose claims seem to bear 
closer scrutiny are Never So 
Lucky and Little Robert. 

Never So Lucky, a good-look- 
ing So Blessed colt, got off the 
mark at the first time of asking 
last season with a win at 
Windsor, before going on to 
better things, while Little 
Robert is thought to be back 
to the form which saw him far 


from disgraced in the Richmond 
Stakes. 

Another handsome sort, and 
one with the early pace 
required here. Little Robert is 
sure to go well off 8 st 9 lbs. 
He is the selection. 

All but six were withdrawn 
from the City and Suburban 
Handicap at the final declara- 
tion stage and it seems dear 
now that the conditions may 
have to be refrained to this one- 
time fine race, which has not 
surprisingly, lost its Ladbrokes 
prefix. 

In the absence of Funny 
Spring, the 10-Furlong event 
could well be destined for 
Lulav, third of 28 behind 
Braughing in last year's 
Cambridgeshire. 

A second likely winner for 
Lulav's vociferous owner, Mr 
Chummy Gaventa, is Maariv. 
one of five runners for the Hyde 
Park Stakes. At Cheltenham's 
Sean Graham meeting Arkan 
can give Jeremy Hindley his 
biggest jumping prize to date. 

EPSOM 
3.05 — Lulav* 

3.35— Little Robert*** 

4.10 — Maariv 

CHELTENHAM 
2.30 — Mr Jerry 
3.40 — Arkan** 

RDPON 
5.15 — -D ultra 


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Financial Times Wednesday' April Sl I982V - 


THE MANAGEMENT PAGE 


EDITED BY CHRISTOPHER LORENZ 


Training tries to go it alone 

In the first of several articles, Alan Pike examines the UK’s new emphasis on voluntary industrial training 


BOARDROOM BALLADS , 

UNCOMMON MARKET 

{with apologies io Arthur Asfceg) 


INDUSTRIAL TRAINING In 
Britain is going through its 
biggest upheaval for decades. 

There are many voices, par- 
■ fccularly but not exclusively on 
the trade onion side, which dis- 
agree with the Government's 
decision to place greater 
reliance on voluntary training 
efforts at a time when most 
industries are looking for every 
chance of containing costs. But 
even clitics do not deny that the 
decision to make industry much 
more directly responsible for 
training is concentrating minds 
on a subject where there has 
for long been too little original 
thought. 

No single industry can be 
precisely typical of others, but 
printing has to cope with many 
of the difficulties which will be 
experienced elsewhere. It is, 
like most sectors which have 
until now been covered by 
statutory training boards losing 
its board and having to create 
voluntary arrangements from 
scratch. It is .a highly diverse 
industry, with several autono- 
mous sectors and an extremely 
high proportion of small em- 
ployers. It is also an industry 
which often enjoys, and some- 
times deserves, a reputation for 
beme one where technology — 
and hence training requirements 
—change at a more breathtaking 
pace than industrial relations or 
management attitudes. 

Taxing task 

\ Last year the Manpower Ser- 
vices Commission carried out a 

sector-by-sector review of train- 
ing requirements in more than 
40 industries. Its main purpose 
was to consider which sectors 
continued to require statutory 
training boards and. judging by. 
the language of the final report, 
the MSC review team found this 
task particularly taxjng where 
printing was concerned. 

While giving the Printing 
and Publishing Industry 'Train- 
ing Board credit for haring 
made a positive contribution the 
review team felt that it had not 
been able to confront directly 
the difficult problems of reform- 





Old and new: despite the similarities of these two scenes the tedindopes being used are very rfiffwmt. 
Mow a breakthrough in die training practices in the printing industry may be bnmment - 


ing apprentice training, intro- 
ducing new technology and 
promoting adult training. 

But the review team’s main 
doubts concerned the future 
prospects for training in the 
industry rather than the past 
performance of the board. Sug- 
gested voluntary arrangements, 
said the report, seemed to a * lack 
credibility in respects," par 
ocularly about the -resources 
which would be needed. 

" We consider that current 
proposals for a voluntary system 
are unlikely to meet the 
industry’s needs. At the same 
time, we are equally clear that 
a statutory body would do 
markedly better only if there 
is a strong commitment on the 
patr of the main unions and 
employers’ organisations to 
using it as a vehicle for actively 
promoting the New Training 
Initiative objectives.” 

The arguments about the 
retention of the statutory board 
are now part oE the past and 
somewhat academic in view of 
the decision by Norman TebbiL 
the Employment Secretary, that 
the Printing and Publishing 
Industry' Training Board is. 
among 18 which hie to go.. But 
the MSC review team’s doubts 


about the future of training in. 
printing are not academic. 
-From now on the industry has. 
to rely upon voluntary arrange- 
ments which will ‘ begin life 
under a shadow of doubt about 
their likely effectiveness. 

The MSG review team’s 
doubts are not accepted as 
valid by the British Printing 
Industries Federation. the 
employers’ body for general 
printing which drew up a plan 
for voluntary * arrangements 
after the majority of Us mem- 
bers declared themsfelves- 
against retaining the statutory 

board. 

B.PIF reasoning begins from 
the premise that the training 
board has never succeeded in 
bringing about the fundamental 
change in approach to produc- 
tion worker training which 
the tradition-bound industry 
requires. In the highly- 
unionised environment of print- 
ing. says the RPIF. the only 
way forward is through direct 
negotiation . and agreement 
between employers and -unions. 

* Officials of the training board 
and its surviving band of sup- 
porters would broadly . accept 
this analysis, but argue that it 
was never the board’s respon- 


sibility to meddle directly in 
industrial relations issues. 

This has all the makings of 
an absorbing circular argument 
— but it is cut abort by the 
fact that the BPIF and the 
National Graphical Association, 
the leading print craft union, 
are poised to achieve just the 
sort of breakthrough that has 
eluded the industry in the past 


Standards 


Exploratory discussions on 
the modernisation, of training 
began between the BPIF and 
the NGA in October 1980, as a 
quite separate exercise from 
tiie Government - initiated 
review of statutory training 
boards. These blossomed into 
more formal negotiations, and 
an agreement could be 
announced within weeks which 
would end the industry’s exist- 
ing time-served apprenticeship 
system and replace it with a 
scheme built around training 
to standards rather than time. 

Young people would become 
craftsmen * when, depending 
upon individual progress, they 
had satisfactorily completed the 
appropriate standards etf com- 


petence, while training require- 
ments would be specified in 
national agreements between 
the BPIF. and union ‘ and 
enforced at company level 
through joint managemeat- 

The scheme win. depend upon 
more than national level agree- 
ment between the BPIF and 
NGA to ensure its success, 
muon action. ' 

Later this year it will have to 
pass the scrutiny of an NGA 
national conference — in a bail 
fall of delegates trained under 
the old regime of tune-serving. 

And- wen the national level 
. agreement Which the BPIF and 
NGA are dose to achieving is 
complicated by the fact that 
the TUG — still -furious at Teb-_ 
bit's , abolition of most of the 
statutory training boards — has 
advised affiliated unions not to 
co-operate with new voluntary 
arrangements which it regards 
as largely sham. 

Nonetheless, the progress 
- made recently, is no mean 
• achievement. The Government 
has decreed that apprenticeship 
schemes must be transformed 
from time-service to a stan- 
dards-based system by 1985, and 
the printing industry is already 
dose to this goal. It is a goal 
winch is — as the BPIF argues 
— being achieved through neg- 
otiation by the parties directly 
involved. 

Why, then, are there so many 
tinge ring doubts that the abol- 
ition of tiie statutory training 
board will reduce the effective- 
ness of training in the panting 
industry? 

Some doubts concern the 
arrangements for the proposed 
system. -The BPIF wants joint 
union-employer training com- 
mittees and a small specialist 
department of trainers funded 
largely out of companies’ 
membership subscriptions. But 
the resources available to such 
a group would be tiny com- 
pared with the facilities of the 
training board and its 160 staff. 
The federation hopes that the 
industry’s system of group 
training associations, which 
have developed to serve the 
needs of smaller companies, 
will flourish under the new 
system — but critics fear that 


Oh what a gloria as thing to be 
A fuUy-paid-vp-member of the EEC 
Though there's still Pie little problem of 
the entrance fee . 

It’s hurrah- for the Common Market? 

* 

Oh what a gUtter in our chairman's eye t. 
When they offered him a market of 
enormous size. 

With a berry of commissioners to harmonise 
The affairs of the Common Market! 

■ ■ ■ * 

Oh what a. galloping sense of fun. 

To strap a little Mini for a Citroen, 

And run a budget deficit of twoJoone 
With our friends in the Common Market ! 
* 

Oh what a salutary/ thing to be , 

A proper European with a CAP 
Offering the fishes in our deep-blue sea 
To owr friends in the Common Market! 
* 

Oh jor the fatty of the fool who dares' 
Grow a different apple from the Ukes 
of theirs. 

Or propagate a species of offending pears 
To the ones of the Common Market! 

* 

Oh for the sharing of our common fates. 
Consummated at the summits of the 
Heads of Stoics, 

When they puboense each other at 
alarming rates 

In the mmie of the Common Market/ 

.' ■ * 

Oh for the feeling that toc’re not alone. 

To be learning' French and German, 
on the tingiutphone. 


But every other word i® either "win" 
or u juWP w 

In the world of "ike Ommcn Market};* 

Oh for the knowledge that Vmfmoy fm - 
To practise anywhere m the Community; 
I’d like a job in Paris but they 
wjon’t hat* me. . • 

In spite of the Common Market! 

Oh for the energy and cask tee spent,: 

On elections to the European Pariiomew^ .. 
But it's' shaping up to another wmeveet, ; 
In the life of the Common Market! 

Qh/what a difficult thing to please . 

Each and every one of such a Nine \ 
like these „ *- '• 

And soon there'll be the Spanish, and - 

the Portuguese , 

In the great big Common Market! .. - • 

Oh for another never-ending botrf 
Of fighting over whether we arc in or but. 
And no one really knowing mhat it’* ; • 
all about . J . 

To belong to- the Common Market! 

The hoard is reassessing were we tight - . 
to join, 

Jn spite of all the aggro to our 
corporate groin. ... •- 

But we never can decide it till we , r 
spin the com, " 

Heads or tails for the Common-Marhett 


Bertie Banuhetbm 


Next week: The Public Sector 


the reverse will happen. 

It is not yet certain how some 
of the industry’s sectors outside 
general print, like the news- 
paper industry, would lock into 
the BPIF scheme. And there 
are ominous suggestions that 
many of the 39 printing depart- 
ments. in local authority 
colleges will not survive the 
move away from the statutory ! 
system. 

A breakthrough between the I 
BPIF and the NGA on 
apprentice training will, if it : 
comes to fruition, be a dramatic i 
step forward for the industry. I 
But if large numbers ? of 
employers were to use the shift 
to voluntary training arrange- 
ments as a chance to 
volunteer to opt out it would 
be an equally dramatic step 
backwards. 


THE PRINTING AND PUBLISHING INDUSTRY 
(EMPLOYEES AND OCCUPATION): 


National newspapers 
Regional Newspapers 
General printing 
Periodical publishing 
book publishing 
General publishing 
News Agencies 
Photography 
Screen process printing 
Re pr ography 
Let t erpres s blocking and 
engraving 


37.000 

60.000 
159,000 Managers 

19.000 journalists : 
ISjOOO Technical 

12.000 Clerical 
3J)OD Production 
ADOO Distribution - 
54)00 Sales 

1,000 Photogr ap hy 

- 

namcenonce 

3j000 Others 


Note: The Printing and Publishing Industry training board kwy hi 
1980-81 was 0.9 per cent of payroll for newspapers end general printing 
and 0-8 per cent for. other sectors. Exemption for companies meeting 
the board’s training recommendation* is 

National newspape r s— 84 per cent of estbtishments (92 per cent of 
employees'). Regional newspapers 67 per ceotr (80 per cent employees), 
General printing— 47 per cent (71 per cent employees). Reprographic*— 
30 per cent (19 per cent employees). 

Souroa: PPITI/MSC 


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RENOWN INCORPORATED 

On 14th April 1982, the Board of Directors met and Issued 
the following report* — 

ANNUAL BUSINESS RESULTS 
(Audited and on a consolidated basis) * . 

Tear ending - 


■ BUSINESS PROBLEMS 


Gaming licence 


6V OUR LEGAL S' 


Yen miifiorr 
?8I 1980 

.393 211.819 

1.457 13.129 


31st December 1981 
U.S.J thousands 


,1981" 

Net Sales " Til-393 211.819 ; 960S77 962JB14 

Operating Income ... , 13.457 13,129 61,168 • 59.677 

Income Before Income • „ 

Taxes 15.081 16,554 68.549 75.245 

Net Income 1..... 7.470 8.261 33.954 37349 

Net income per 5hare 55.98 69.13 . 0254 0314 

Rate of Net Income on 

Shareholders' Equity" 10-5 17.0 10.5 17.0 

Total Assets 134,430 112396 611.045 510.436 

Total Shareholders' 

Equity 70,807 48.690 .321,849 221318 

1 Ratio) (52.7) (43.4) (52.7) (43.4) 

\ ..(per Share) (497.48) (44831) ’ (236) (2IM) 

NOTES; . . - ■ 

1. The net sales , in this term does not mduda the sales of 
Renown-Look .products. . 

2. Exchange Rate: 220 = 05-51. 

Copies of the annual report will be available at the offices of 
Robert Fleming & Co. Limited, 8, Crosby Square, London -EC3A 6AN. 
April 1982 


1980 

962JB14 

59577 


I want to apply for a licence 
for a gaming machine In a 
- cafe I have opened. Before 
doing so, is there not some 
Act under which l can have a 
conviction for false pretences 
in 1969 taken out of the police 
file? And is it the case that 1 
• can have only one machine In 
-a snack bar? 

The Rehabilitation of Offen- 
ders Act 1974 is the relevant 
statute. The file is not des- 
troyed, but your conviction 
may not he disclosed. You are 
not limited to only one machine, 
but a licence may, as a matter 
of discretion, be restricted to 
one machine. 


Members’ rights 

I am the only non-director 
member of a small retailing 
company. After the directors 


refused an offer for the free- 
hold of premises in 2978, it 
was sold In 1979 to a son of 
one. of the owner-directors for 
less than half the sum offered 
• and within a few weeks the 
company ceased trading. I 
. have beard nothing from the 
company since the AGM of 
1979. _ Am I entitled to view 
■ the minutes of the hoard 
meetings and previous 
AGMs? Is there anything I 
can do? 

You are not entitled to see 
minutes of board meetings. You 
can, however, inspect the com- 
pany’s file kept by the Registrar 
of Companies and you are 
entitled to inspect minutes of 
meetings of shareholders. It 

might be wise to consult a 
solicitor. 

No legal responsibility' can be 

accepted by the Financial Times 
for the answer* given in these 
columns. All Inquiries will be 

answered by post as soon as 

possible. 


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Sadler's Wells 

Agrippina 

by MAX LOPPERT 

I 

Kent - Opera’s current London such precise care on the sound- I 
season features recent produc- ing of the score. Kent Opera 
tioos of Figaro and Handel’s proceeds to throw away most of 
opera for Venice. Agrippina, as the gains on a production des- 
wll as a revival of the Jonathan tending at worst to the lowest 
Miller staging of Onegin. On level of footling farce. There - 
Monday Handel (in Anne Rid* are delicious hints of comedy 
ler’s splendid translation) com- in the JJhretto and in the music 1 
me ™i operations — the last hints blown up by the pro- ! 
and largest success of the early ducers, Norman Platt and 
Italian portion of his long Christopher Bruce, to the 


career. Agrippina is a smashing fUmensions of an avalanche. I 
piece, a riot of melodic Reviewing the first night at 
exuberance and textural fantasy t'unbridge Wells last month, 
disciplined within the bounds .Ronald Crichton, commented on 
of a witty and distinguished this page that the style, which 
libretto; while it might not be might have proved apt for 
true to say that its flair and Offenbach, seemed to have been 
vitality were, never again applied to the wrong opera; 
equalled — not at all true, indeed Monday’s performance made 
— the sense communicated by its one feel fearful, bv analogy, 
three brilliantly planned acts of even for the most robust 
a young theatrical genius in full Offenbach 

Si his p ° wers and . As the tired old cliches of 
rtelighttng in the employment of British burlesque were dragged 
them is at times overpowering. out for yet ano ther operatic 
So. an excellent addition to airing. Handel’s Nero and 
the adventurously varied Kent Claudius fan extraordinarily 
Opera repertory; and the com- wide-ranging bass part) were 
pany’s purely musical response more than once lost to view — 


to the work was one of the very 


rounded 


few features of The evening one characterisations turned to 
could commend without reserva- flatness and feeble japery. 
tion. The Kent Opera Baroque (Surely it was sheer madness 
Orchestra, a trim, well-tuned to require of David Thomas's 
body, is conducted .with great Claudius and of the minor male 
vitality and resourceful applies- players comic routines that 
tion by Ivan Fischer — not every their limited dramatic gifts 
one of his tempo decisions were were so obviously incapable of 
apt to the vocal capacities of his fulfilling.) 
cast yet the youthful spon- At least there was Felicity 
taneity and energy of the per- Palmer in the title role-^- 
formance were a happy match a proud, powerful reading of 
for the music. (Is rubato the a great role disdaining the 
latest discovery of “ authentic " carry-on (perhaps that should 
performance ? If so— or even if read Carry On) around her. 



Royal Court 


Not Quite 
Jerusalem 

by MICHAEL COVENEY 




. ;■'» ~v<: • • .■ 






" < t. ■ 





£5.7 


Neil Pearson in Oi for England and Jenncy Sedgrove in The Woman in White 


m 


Television 


Vexed Issues 


by CHRIS DUNKLEY 


' The Royal Court under Mas 
: St a flord-Cl ark has twice brought 
i back to the main stage a new 
] play it really believed in. The 
i first was Caryl Churchill's CIo«rf 
; V*nc. The second, like the first 
’■ an impeccable choice, is Paid 
i Kember’s kibbutz drama that 
was premiered at the end nf 
1980. 

It is an extraordinary first 

play, the son of piece 

John Osborne might have 

written had he stayed young 
and pricked up his ears to the 
> work of David Hare and Trevor 
i Griffiths. The title is double- 
I edged. A small influx of appal- 
• ling young 'English tourists, 
! disappointed by a home country 
j that promised so much to their 
. generation, find a hostile recop- 
I tion in a supposedly idealistic 
I socialist slate. 

j The structure is simple, almost 
! classical. Arrival and departure. 
J The English are in search of 
holiday, even escape. The 
! Israelis — represented by a mili- 
tary girl of the familiar sort 
who would as soon throw you 
over her shoulder as look at 
you. and the volunteers’ liaison 
officer — are stern in their insist- 
ence of serious cultural ex- 
change. These two roles are 
! repealed, to even greater effect. 


by I e sloe Ud»nr, and Bruce 
Alexander. 

Tiic play i « about much more 
Ih. m the immediate filiation: 
the awfulness of the British 
abroad: the dreadful apathy 

parlly induced l»j never having 

been taught lo c\pl.i:n them- 
selves or study liisinry. And 
yet, when failed upon to do 
so, what emerges is an expres- 
sion, albeit p»*rvtT-e, of identity. 
In tin* kibbutz show to which 
the. pi. I v builds. Dave and Pete 
.sing ■•Underneath the Arches” 
draped in a Union Jack before 
baring their ImJinms. 

Tins scene works brilliantly 
in Los Waters’ prnduction 
eh telly hf*«.ui. c e David - Thrci- 
f nil's* central performance as 
Mike, the Cambridge refugee, 
is building quietly to self- 
knovvleilie. <-| ;i the way he has 
two nf tin: best speeches heard 
on the modern slave fur some 
Him*. The-e arsi.rnl.-ile the 
ephemera! n.ili'*n of the English 
idyll and the iSe«p.nr behind the 


itliU 

iniil l.,!Sgua^f 

it ini? t 

attii'Kiuti'-n: ’ of 

Thi-r 

• ;* marvellous 

.> IV! 

■r Hartwell — a 

1 fi*w>- 

if-d and pnnlsirie 

umIIv 

r»n Hired — and 

work 

truin Selina 

David 

Kidder and. 


especially. Kevin McNally. 


performance? If so— or even if read Carry On) around her. 11 1135 Ion 8 teen argued that on television these days is very this column that, because of the us; that If you turn youths out 

not so — & ben trovato.) The Meryl Browser's Poppaea coin although television has until great At the most undemanding very nature of television — de- of school onto the dole they will 

edition is full, the use of orna- demned at the start to Barbara now teen constrained by the end. the soap operas, there livered continuously into the turn into thieving skinheads tall 

ment in reprise mercifully Windsnrwfvnp Icittenishmux scanty of it s outlets and that seem to be more titles than sitting room — series and their musical equipment is 

devoid of the kind of exa&sera- imiiM iLmiinf broadcasters have ben forced to ever: Falcon Crest has joined serials are its most valuable stolen) but that underneath 

tion that in other recent Handel mW™? the Tobll cSmr tnad a middle P ath attd Flak and Blood has and its most natural dramatic they’re all lovable? 

productions has led to the of Oflio nwlliflwmSy ^ne if p0rt , slatus quo ’ albeit “S* * ba £ t0 BBC ?.v. th0 ^ forms Yet within te evision it The oj AnMgh on 

tiniest hankerins for the bad taatly, in a manner qmte at without the vigour of the first is still the single play which RRr « * lhp nrpv i n us niohi. 


L 


theatre, but on musical grounds to ve it all- I thou eh* it an n J eralure ’ tne ness ™ new episuues ui inmgie. ahu m course mere are gooa ^ uninhabited Hebridean 

every minute was well ment 10 e “ . a J 1, J. tnougnt it an theatre. one place on television the senes about life on a Chan- single plays. This year we have . r; . 

every minute was wen spent. opportunity badly but not *»_ vnu he nf nel ferrv which has all the seen The Combination. Too Late i sIand dunn S some fulu ' e war * 


,7 v . opportunity badly but not where you could be sure of nel ferry which has all the seen The Combination. Too Late to Te if - 

But alas! having lavished totally bungled. hearing the strongly opiniated range, variety and grandeur of To Talk To Billy. How Many e o en , 1 ’ 

c . I . - -J, i/n j- r, voice of the individual was in the musical instrument after Miles To Babylon and Voyage ? othmg a ° out 

St- John’s, Smith Square [/Radio 3 the single play. which it is, presumably, named. Round My Father and even . from writer Terence 

T| Vv A A X v That and the contention that Moreover, for all the loving though the kst two were 

Krtffpn Q tin Ivl n7^ft the Single Play was the best detail of Granada’s A Kind of adaptations they make a most nholSreDhed and 

OlllLvll dllLl IVxUZjdl L place to bring on new television Loving, with its drummer-boy impressive quartet^But what of j mDr p s ^ vp ]v i^ te d & P 

writers were the two most Welgar Shredded Wheat boxes. toe others? The common act ^_ f 

The connecting thread In the Fingerprints are few. though respectable arguments for the i T*2t SmS di^on tele?isfo7 were 

present series of BBC lunchtime It has the tense, thin texture uniquely protecUve altitude itethree^hook brassiere farten- banaMWot ttosealtce-m me timeless profundi- 

i-ecitals is the chamber music of much of Britten’s later taken towards the single play, ^ttbagtas ^looklAttatde ^ ties and packed full of Shavian 

of Benjamin Britten. In their chamber S^tiv^ slSm^of 1 qlSoK up Tn^high prodifction^i^ Certainly we have had one or polemic most of us would prettj' 

programme on Monday. Ench fanfare near the beginning is positive siorm oi quesuons ^ * _ r _ ^ rerpntlv natshlv Home soon stop watching. But, having 

Gruenberg and John McCabe entirely characteristic. And in about the implied gutJessness Cr wsroad* and Coronation S^ ec , H 01 Se about SeeoimlSs previoudy called for more 

included something of a Britten its unsquashable confidence and “u a ^ Watching them Ts a little like postmen, and Willie's Last Stand narrative and gratefully watched 

rarity, toe Suite for violin and ^ sSoSsed fo deal S watSSSttiedothes goroS Sbout a drunk’s failure to it arrive, is it now unreason- 

fJSSL i 6 oo^J a ? o y « W0 ,S: ttl® pE nolitics. social mores and ohS in a washing machine with the achieve an section, but happMy aUe to call for ; a higher pro- 


written in 1934 and 1935. the composer. Passages in fhe politics, social mores and phil 
Suite was originally performed march and waltz especially osopny in whatever form. CUT' 


characters everlastingly form- such material seems increasingly portion of intellectually stimu- 
in g little entanglements and rare. la ting material? Television has 


version. But on this occasion Gruenberg and McCabe pro- last quarter of the -Oth century anQfhgj. pajj D { grubby under- writers, more of -them in the theatre, but if the use of new 

we heard the more familiar five yiged a lively, tight • account such a major proportion of this pants. last 12 months or so than for writers is to mean anything 

movements, which add anintro- The moto perpetuo could have modern medium should he as The middle ground of tele- man 2 years that Hfiey do tend to more than cheap labour there 
auction and moto perpetuo to h ad more facility, but the lonely effectively barred from com- vision drama ^ dominated Pay much more attention to must surely be some m the 

the original march, lullaby and lines of the lullaby were mumcafang powerful personal by buttons and bows and bon- narrative and plot than used to offing who can bring ideas back 

waltz. . unforcefully sustained, and the opinions as were the news- nels and bustles: those costume be the case— and for that, mudi into television drama. 

Jt "SPSS'S 1 ? Parodies of the waltz were held papers of the early 18th cen- drama xrials which Britis h thanks— but that, apart from t h ad honed , hat BBr ,. s 



ml 









it betraj^ a.consldereble know- ^ G^^r'g’s'Mmetim^ in- qmetiy about extending all the like"*" Mai' aao toer words as nof place lo go n'JthmSMTrt 

ledge of the doings of the d ulgent phrasing and vibrato old broadcasting controls and triumph for producer Jonathan far the strongly opinionated h oDMiLe^work Tri^hv 
Second Viennese School: one nicehr set against his restrictions to the new outlets Powel V voice of toe individual. !, ne opetnng work. Gnmes by 


David Thrdfall and Lcslcc Udwin 


Second Viennese acnooi. we nicety set against his restrictions to me new ouueia roweil w r . -y.,,, - 

remembers that the score was no-nonsense urgency even though the sole justifica- Thp 19th ccnturv atmosnhpre Again there are occasional caiyi Churchill, had little more 

composed shortly after Britten ^ s barp-focus profiles. tion for restrictions — that very wI) j C b director John Bruce* con- exceptions. It seems clear that ^ aa a warmed-wer bubble and 

had been prevented from going ^ scarcity- is disappearing. Ye 7iu4J W^SmSieo^Si Trevor Griffiths wanted to squeak of Orwell. Huxley and 

to study with Berg. ANDREW CLEMENTS with the threat of controls being moments P and the castintf express something wboifc he Burgess to offer a future with 

, . i vr*i . endlessly extended where is tele- “sneriallv oflan RidiardsorTS fe« powerfully in Ws ITV play electronic^ plates in arimluaU* 

Architecture along the Thames vision’s Junius? Its Wilkes? hCstericallv delicate frwn Central, Oi For England, brains and television documen- 

..... „ T . . jijrauuMiijr ucixuaic a „ tanps aVnnf flrmine VOlir Fatl- 


Powell. 


Saleroom 

Valentino’s shirt-£380 


A one-day forum for the London Region Council, 
exchange of new ideas and together with the Urban Design 
practical suggestions on ways to Group, the London branch of 
■ • .-hi. Tho Wnval Town PlannmE 


able Pride and Prejudice 


ripvpi.vnmpiits. -Institute. ii v s acuviues in tnis unaaie ■ 

“J 1 5 d TTie Secretary of State for teevision drama even more - area Tiave been much more en- Smce it seems that the race That does not make them poor 

TlS nSenrSalL AantLu! th^Enrironme^t, Mr Michael important, assuming that it is cou^gmg recently with not raging outside was actuaHy subjects for drama, but BBC l's 
The Glaziers Hail, v womaguc me & uresent the indeed the main repository of contemporary themes being started by a member of toe play 20 years on explored 

C fe S !2Snw Which -Will opening address Ipeakers and Powerfully expressed opinion. pursu ed. The serials Muck and band, and only the one with a ; neither subject as inventively 

'Sn ™ inSude poll- However, anybody who watches Brass and The Brack Report gxandad gives a hoot about or as stimulatingly as the 

consider what is_ being done ueiega s a lot of television must have hp» hnth vionmucK- with latterdav Nazism, it is far from Aldprmastnn vprsion. Fnt-ihpr. 


side environments, is sponsorea mg 
jointly by The London Environ-, academics 
ment Group. " of the RIBA Londoners. 


lot of television must have here both dealt vigorously with latterday Nazism, it is far from Aldermaston version. Further- 
least some doubts about that tough modern problems, and clear why the gig is spurned more the television play was 
sumption. . have helped to reinforce the and equally difficult to know poorly served by a dreadfully 

The sheer quantity of drama belief expressed repeatedly in what Griffiths is trying to tell tedious style of direction. 




A pigskin dressing case, a 
sash casket and letters, a mask 
and a silk shirt were among 
Rudolph Valentino memorabilia 
sold by Christie's South Ken- 
sington yesterday for a total 
of £8,420. 

The silent movie star’s 
dressing case went for £ 2.000 
to a Zurich dealer, the sash and 
casket made £1,270 and were 
bought by a woman who collects 
Valentino items and who was 
also a friend of the original 
collector Maria Carolina Elliot. 

The black mask worn in the 
film Eagle went to producer 
Terence Scammell of Holly- 
wood for £450 and the famous 


silk shirt worn in Soii of the 
Sheik made £380 and is to be 
•worn by an illusionist .in a 
summer scasnp at Sand.own, 
Lsle -nf IViaht. 

At Sotheby's a French wheel- 
lock horseman’s pistol, 
apparently by Francois 
Pouniero], sold fur £26,000 and 
a Qian long .. period, Peking 
Palace Workshops. Chinese 
glass snuff bottle was bought 
by Rnh 'i-i Hall ‘nr £22.1100. The 
first of a nvo-day auction of 
Hebrew books made a total of 
£95.104 with the Museum of 
Jewish Art. Jeru-alcm. siting 
£7,500 for a Biblical lexicon and 
grammar. 

PAMELA JUDGE 








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HAVMARKET theatre ROYAL. 8S0 
9832. U*MI May 29. E^s 7.30. Mat* 
WM 2.30 S«t 4.0. KNELOPE KEITH. 

'ANTHONY QIJAYU. TREVOR 

PEACOCK to HOMONS CHOK E. A 
cwpvVt bv- Harold Bnntiaiiu. Dwmd 
bylSaM Evre. RonNnq HI 

A Com of VamJrt i»H Capain 
Emsboond. 




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Financial Times Wednesday lApril 2 1 1982 


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FINANCIALTIMES 

BRACKEN HOUSE CANNON STREET, LONDON EG4P A BY 
Telegrams: Rnantfmo, London PS4. Telex: 8954S71 
Telephone; 01-2488000 


Wednesday April 21 1982 


The fleet gets 


nearer 


UBS THATCHER is clearly pre- 
paredto go to the brink— and 
possibly over. Ur Francis Fym, 
tiie Foreign Secretary, will not 
£o to Washington until tomor- 
row. Give Mm a jay for talks 
with Mr Alexander Haig, the 
US. Secretary of State, and it 
will be almost the weekend. By 
that time, the British fleet 
Should be very close to the Falk- 
land Islands— and to the Argen- 
tine mainland. The order to fire 
could be imminent 

Yet precisely because time is 
short, it is worth standing back 
to review what -is at stake for 
both sides and what are the 
wider issues. 

Boxed in 

The difference of principle 
between the Argentine pro- 
posals for a settlement which 
Ur Haig trnasmitted to London 
on Monday evening and the 
basically British, though slightly 
Anglo-American, proposals 
which he took to Buenos Aires 
last weekend seems to be this: 
Britiain is ready to cede sover- 
eignty of the islands, but not 
yet and not necessarily direct 
to Argentina; Argentina wants 
sovereignty, or something very 
close to it, now. 

The British position is hardly 
surprising. Indeed since the 
Foreign Office had been busy 
seeking a transfer of sover- 
eignly before the invasion took 
place, it would be remarkable 
tf it were otherwise. Where 
Mrs Thatcher has boxed herself 
in, however, is in her insistence 
after the attack that Britain 
must first recover the islands 
before there can be a long-term 
solution. 

No return 

The Argentine regime has 
boxed itself is in another way. 
Having captured the islands and 
asserted sovereignty, it believes 
that it would be a loss of face 
to surrender it now to a pro- 
cess of negotiation, the outcome 
of which is bound to be un- 
certain. 

What no-one involved appears 
to tbink is that there can be a re- 
turn to the status quo ante, 
defined as British sovereignty 
theoretically defended by the 
Royal Navy several thousand 
miles away. Thus, in a rational 
world, the elements of a nego- 
tiated solution ought to be 
there. In the longer run. there 
will have to be a Lesser role for 
Britain and a larger role for 
Argentina. The question is one 
of finding a third party who 


can bring the two sides to- 
gether. 

Mr Haig has tried very hard. 
It is unfair to say that the 
American Administration has 
leaned too far towards Argen- 
tina. The fact is that the UH. 
is the only country ' capable of 
acting as a broker between 
London and Buenos Aires and 
it has a very considerable 
interest in preventing war in 
the Sout h Atlantic, as have we 
ail. It may be that even at tfcis 
late stage the mediation effort 
is not quite over. The UB 
could, if asked, go along with 
the European Community in 
imposing economic sanctions. 
It could refuse to support an 
Argentine attempt to invoke 
the Rio Treaty, wtuch. says that 
an attack on one American 
state should be regarded as an 
attack on a£L And Mr Haig 
could go on warning the mili- 
tary regime that Mrs Thatcher 
and the British fleet mean 
business. All of toat may well 
happen in the next few days. 

Impressive 

Yet it is also possible that 
tiie American mediation is near- 
ing failure. The question then 
is what happens next To us 
there is no doubt about the 
answer. Britain must return 
immediately to the Security 
Council of the UN. It -was the 
UN which first condemned the 
Argentine aggression and called 
for a withdrawal and a nego- 
tiated settlement Since then, 
there has been an impressive 
array of support for the British 
position — more probably than 
the Government dared to hope. 
It is imperative that that should 
not be lost through premature 
military action. 

Concessions 

As we wrote last Thursday, 
the dispute may have begun as 
a bilateral one between Britain 
and Argentina, but has been 
elevated to a test case of inter- 
national order, partly because 
of the success of British 
diplomacy. It is worth going 
back to the UN to explain the 
position and to reaffirm its 
backing. 

If that means slowing down 
the fleet, so be it It is one 
of the principles of negotiations 
that both sides have to make 
concessions. The UN may be 
better placed than the U.S. to 
play the third party in the 
search for a peaceful solution. 


Conflicts in the 
Arab world 


CONFLICT BETWEEN Syria 
and Iraq has been endemic ever 
since the Oramayad and Abbasid 
Caliphades vied for supremacy 
in the eighth century. Since the 
hreak-up oF the Ottoman Empire 
rivalry between Damascus and 
Baghdad has sometimes been 
tempered by a common wish to 
unify. but mare often intensi- 
fied by a determination to 
dominate what rhe Arabs call 
the '■ Fertile Crescent.” 

Syrian President Hafez 
al Assad decided last week to 
break off all relations wtub the 
Arab Baath Socialist Party 
regime in Baghdad. It was a cul- 
mination to a bout of feuding 
dating back to summer of 1979 
when little Jess than a year after 
the two leaders had agreed an 
embryonic form of union. Presi- 
dent Saddam Hnssein of Iraq 
executed 21 members or his 
ruling clique for alleged con- 
spiracy with Damascus. 

Relations between the two 
countries are now as bad as 
they were m 1075 after an argu- 
ment over the sharing of water 
in the Euphrates, and differing 
attitudes towards settlement of 
the Arab-Israeli conflict, 
brought armoured units face to 
face across their shared border. 

Bitterness 

Nominally the argument 
derives from ideological dif- 
ferences between the two wings 
of the Baath party— an Arab 
socialist movement — which 
respectively rule the two coun- 
tries. Actually these wings have 
become vehicles for the exer- 
cise of power by two cliquish* 
repressive regimes, dominated 
in Syria, by members of the 
minority AlawaRe sect and in 
Iraq largely by a group of Sun- 
nis from one particular region. 
Tbefcr rivalry reflects personal 
bitterness between two leaders 
as they attempt to dislodge each 
other from power. 

It is the Iran-Iraq war which 
gives this sterile squabble a 
wider significance. The key 
Syrian act of hostility cane 
earlier this month when Syria 
closed its border with Iraq and 
cut off the flow of oil through 
a pipeline transporting for 
export nearly half of Iraq’s 
greatly diminished Sow of oil. 


This blow to Iraq’s war finances 
reinforced Syria’s support for 
Iran in the form of weapons 
and ammunition — support in 
which Syria finds itself in 
bizarre league with Israel. . 

Propaganda . 

Indeed conflicting. Arab atti 
tudes towards this war 
exemplify the utter disarray 
in wivch Israel’s enemies now 
find themselves. It is an issue 
dividing moderate and conser- 
vative Arabs from Moslem 
extremists. Libya and Syria 
are backing Iran, the traditional 
enemy of the Arabs. Jordan 
and the oil-producing states are 
backing Iraq, after being badly 
shaken by the discovery of an 
Iranian-inspired plot to over- 
throw the ruling family in 
Bahrain. Having invested an 
estimated $22bn in Iraq to give 
backbone to its war effort, these 
allies have since been even 
more shaken by Iran’s success- 
ful offensive and the accom- 
panying Shi’ite Moslem propa- 
ganda. 

King Hussein of Jordan has 
been consistently bold and open 
as an ally of Iraq at some con- 
siderable political risk to him- 
self. He appreciates that if Iran 
.successfully exports its revolu- 
tion it could in domino fashion, 
bringdown the Iraqi regime, bis 
own house, the established order 
in the Guff and all the Wes- 
tern interests that are bound up 
with-it 

Threatened 

His uncomfortable perception 
is the West’s wanting. While 
Israel may draw short-term 
encouragement from Arab dif- 
ferences as it tightens its hold 
upon the West Ban* aqd pre- 
pares to pay with Sinai for con- 
tinued peace with Egypt, the 
West has interests bound up in 
the regime in Baghdad and sees 
them threatened by the Baath ist 
rivalry. 

The divisions over that dis- 
tant battiefront ultimately 
threaten Arab regimes whose 
wealth and stability can be too 
easily taken fo* granted. They 
also make for a Crescent fertile 
with opportunities for Soviet 
foreign policy. 


CORK REPORT ON INSOLVENCY 


The intensive care 



By Duncan Campbell-Smith 


«TJ 

Ait 


DON'T suppose there 
are many votes is it but 
ought to be a very 
major piece of legislation n — 
thus -Sir Kenneth Cork, for over 
25 years the head of the City 
of London's leading liquidation 
accountancy practice, reflecting 
on tiie future of Ihe Report on 
Insolvency Law just completed 
under his chairmanship. 

The report has been long and 
eagerly awaited. Part I (‘'fun- 
damental principles ”) was 
delivered by the Cork Com- 
mittee to tiie Trade Secretary 
in May 1981. Port n followed 
on March 19 this year. But 
both volumes are still confiden- 
tial and are only due for 
publication on June 9. 

After years of preparation, 
the final delivery date was a 
remarkably fortuitous piece of 
timing. 

A month earlier, the collapse 
of Laker Airways and the fund 
set up by Friends of Freddie 
had pirt the whole issue of bank- 
ruptcy and insolvency back on 
to the front page. 

Two days after the report's 
delivery came the failure of 
Stone-Platt Industries, the 
engineering group. There were 
angry suggestions — equally 
hotly contested by the banks — 
that it. need not have gone into 
receivership. “There must be 
a better way” said Mr Leslie 
Pincott, the company’s chair- 
man. 

It seems inevitable that the 
report’s proposals for the treat- 
ment of big company crises will 
dominate the debate yften it is 
finally published although, as 
the summary (right) makes 
clear, this is only one part of a 
very wide-ranging document. 

Many will read the Cork Re- 
port with Mr Pincott’s bitter 
words in mind, and there are 
many in the City who already 
argue that it is time to look 
again at the American way of 
insolvency to see if there are 
lessons to be drawn. 

The contrast between Britain 
and the U.S. is marked. On the 
one hand is the elaborate, but 
informal British system lauded 
by its practitioners but lai^eTy 
closed to public scrutiny; on the 
other, the rigorous and formal 
American process governed at 
every turn by the courts. 

Consider two cases. When 
Stone-Platt first found itself 
headed for the rocks, there were 
four possibilities. It could have 
sought a Scheme of Arrange- 
ment. This would have allowed 
it to suspend repayment of its 
debts, but -it would probably 
have proved impossible to 
secure tiie co-operation of the 
creditors. The directors could 
have passed a public resolution ' 
declaring an inability to con- 
tinue, prompting a Creditors’ 
Voluntary liquidation. They 
could alternatively have 
solchered on, risking even. com- 
pulsory liquidation at any point. 

Or they could do what in ! 
the event they did — submit the 
company's whole future . to 
intense discussion among its 
bankers, institutional share- 
holders and accountants under 
the sympathetic eye of the Bank 
of England. 

The discussions, of course, 
ended unhappily for Stone- 
Platt This has spurred a some- 


Thefighl^^ 


— — P>THRWAT7QNAt 







IpfReceiveis to . 
l||| of Laker withm six days 


COLLAPSE 

end of a bright star 



Sir Kenneth Cork: Fortuitous timing, uncertain outcome 


THE CORK REPORT on 
Insolvency Law was com- 
missioned by Mr Edmund 
Deli as Trade Secretary In 
1976. Its 712 pages (plus 
appendices) comprise the first 
ever study of this whole legal 
field, from personal bank- 
ruptcy right across to 
receivership and corporate 
liquidation. 

The work took five and a 
half years because evidence 
was taken from more than 
300 parties (listed over more 
than six pages of the report) 
and the committee received 
200 position papers, includ- 
ing some 20 from the pro- 
fessional accountancy bodies. 
The result is 250,000 words 
set in 2,000 paragraphs 
arrayed in 52 chapters. 

The first (and, so far. the 
last) Trade Secretary to 
stamp his mark on insolvency 
law did so almost exactly a 
century ago. The 1883 Bank- 
ruptcy Act introduced much 
of the receivership system 
which still prevails and was 
pushed through by Joseph 
Chamberlain. 

A law was needed, said 
Gladstone’s President of the 
Board of Trade hi 2883, 
“ following tiie idea that pre- 
vention is better than cure. 


to do something to improve 
the general tone of commer- 
cial morality, to promote 
honest trading and to lessen 
the number of failures.” 

That is the triple aim. too, 
of the 1982 Cork Report. Its 
details remain confidential. 
But Chamberlain’s three 
headings are understood to 
provide. Inter alia, tor tiie 
following basic recommenda- 
tions: — 

• COMMERCIAL MORALITY 

Company directors should 
be exposed to greater per- 
sonal liability where they 
gravely mishandle a com- 
pany's affairs under tiie pro- 
tection of the limited liability 
concept Directors might be 
deprived of this protection 
in certain circumstances. 

Parent companies should be 
responsible for the liabilities 
of subsidiaries — unless a 
specific disclaimer has been 
made— where those subsidi- 
aries deliberately take 
advantage of the group’s 
general trading status, for 
instance by using a virtually 
identical name to the parent 
company. (Subsidiaries 

clearly operating at arm’s 
length should not be 
affected.) 

When a receiver is 


appointed to a company, he 
should be obliged to report 
on bis progress to tiie un- 
secured creditor^ as well as 
the secured. The interests of 
unsecured creditors, in fact, 
should be better considered 
on many fronts. ‘ 

In a company liquidation, 
less priority should be given 
to the first place to State 
claims generally advanced as 
“preferential creditors” — 
including the Inland Revenue. 
While more of the recover- 
able assets would in this way 
be available to secured 
creditors who are the next in 
line, they In turn should be 
required to surrender some of 
their priority in favour of 
allowing at least a minimal 
degree of relief to unsecured 
creditors. 

• HONEST TRADING 

Those appointed to act as a 
company receiver or liquidator 
must be property qualified by 
some appropriate and recog- 
nised professional body able 
to take disciplinary action 
where necessary. The report 
addresses two whole chapters 
to legal changes which might 
eliminate so-called “cowboy 
liquidators.” 

CSvtt damages should be 
more easily available to 




shareholders against directors 
who trade while their com- 
pany is insolvent 
• LESSENING FAILURES 

Lesser grades of insolvency 
administration should be 
available to deal with personal 
bankrupts, removing all those 
cases from the courts which 
do not affect the public 
interest In any way. Con- 
sumer debtors— those with 
»mmai income twenty pounds, 
annual expenditure twenty 
pounds ought and six, in Mr 
BEcawber’s words — should in 
particular be administered by 
a new system distinct treat 
traditional bankruptcy. 

A new court official to be 
railed an Administrator 
should be given powers to fix 
a moratorium of limited' dura- 
tion between a troubled com- 
pany and its creditors, during 
which the company might re- 
arrange its financial structure 
with substantial protection 
against moves to trigger its 
compulsory liquidation. The 
Administrator, while generally 
appointed at the company’s 
own behest should allow 
creditors some degree of. 
control over events which 
tails short of tire effective 
take-over Implemented by the 
. present receivership system. 


times acrimonious debate — 
including letters to the 
Financial Times from three 
directors involved — about the 
efficacy of this “intensive care” 
option. A board presence for 
the .banks, suggested one 
director yesterday, might have 
been more helpful “ rather than 
have them employ monitoring 
accountants.” 

The “ intensive care ” option 
has become an integral part of 
the system, not least as a result 
of the Bank of England's 
involvement Its Industrial 
Finance Division has. had 
dozens of industrial companies 
under scrutiny during the 
current recession. 

For ill the loose (al* of a 
"sudden death syndrome" after 
Laker Airways, it is — and has 
been for some • time— very 
unlikely that any major British 


company at least can collapse 
overnight — though whether the 
Bank’s role is yet fully 
appreciated by public opinion 
ait large seems open to some 
doubt 

Now take AM International, 
the Chicago-based office equip-, 
meet manufacturer formerly 
known as Addressograph-Multi- 
graph. It has just filed under 
the so-called Chapter XI of the 
U.S. Bankruptcy Code: Its cur- 
rent debt amounts to 8254m 
(£144m) and there is a deficit 
on- shareholders’ funds of 
842.9m. 

Under Chapter XI. AM Inter- 
national can continue its opera- 
tions until further notice with- 
out having to pay any interest 
on its debts whHe pursuing a 
drastic capital reorganisation. 
This remedy is rarely popular 
with the American financial 


community. But “sometimes 
halitosis is better than no breath 
at all.” as a U.S. law professor 
was quoted as saying in the 
New York Times last Sunday. 

Lawyers’ views carry the most 
weight in the U.S. because of 
the involvement of the courts. 
Under Chapter XI. a debtor 
compauv needs a judge’s 
authorisation for any transac- 
tion out of the course of normal 
business— such as selling a sub- 
sidiary or raising new finance. 

By the same token its creditors 
need a judge’s permission to 
foreclose on loans and can 

oppose a continual on bf chap- 
ter XI at aH. It is notable, 
though, that monthly court 
hearings to review the debtor’s 
status have been abandoned 
since 1979 in’ an attempt to 
reduce the court's involvement.. 

British receivership on the 


other hand is toe domain- of 
accountants and most of them 
are dismissive about toe 
Americas alternative. “Onee a 
company goes into Chapter XI, 
it never seems to come out” 
says Sir Kenneth Cork. ' 

“ Flexibility and immediate 
effectiveness are still toe great 
beauties of toe UK receivership 
system,” argues Mr Bill Mackey, 
one off the receivers 'to both 
Laker Airways and Stone-Platt 
and a leading exponent ’not to 
say advocate of the present 
system. He is sceptical bf legal 
amendments. “When a com- 
pany’s bust, it’s bust. Changing 
the law. will not change toe fact 
of insolvency" 

But there are in fact plenty of 
examples of, U.S. companies 
recovering after Chapter .-XL 
Only last month, Penp-Dixie 
Steel Corporation emerged from 


the ordeal as Continental Start. 
And toe Cork Report, whatever 
the receivers’ misgivings, -does 
appear to constitute a subtle 
move in this direction. 

It is a move intended, says 
Sir Kenneth* amity “to make 
successful current practice 
legally obligatory for all." 
Whatever the qualifications, 
though, toe report couUtwrti.be 
recommending a legal frame- 
work for tire intensive care 
approach already being infor- 
mally applied in many cases. 

It remains to be wen bow 
tola innovation — creating > 
new court' official called an 
Administrator — might be -recon- 
ciled with the views OF those— 
and they appear to include man; 
of toe leading receivers — who 
tbink toe Cork Report should 
provide only fine tuning for the 
present system. 

“Minor nuts and bolts, 
changes are required,”- says Mr 
Ian Bond, a receiver who tfnits 
the Insolvency Services Com,: 
mittee of the Council of Chius 
tered Accountancy Bodies 
(CCAB). “But toe system Ul 
general is working extremely 
well.” 

Yet interfering even with 
these huts and bolts could un-- 
binge some long-standing pracs 
lices In many corners off com* 
pany and financial law. ■ 

Proposed changes to the pre- 
sently unrestricted, scope of 
bankers’ floating 7 ~ (marges 
against assets, for example — 
pushed strongly by toe legal 
establishment — seem certain 
to excite heated debate.: “We' 
would just have to take another' 
look at the security value placed 
on eabh debenture,” said one 
leading hanker.) 

There are also verted 
Interests at stake. . Intensive 
care and receivership are 
undoubtedly big. business. “It 
grew like Topsy” says' Sir 
Kenneth of toe department at 
Coopers and Lybrand which his. 
own firm: Cork Gully, joined in 
1978. More to : the point, only 
12 firms, at the most, are 
capable v f handling . bag 
receiverships. ' 

At the other end of toe 'scale, 
liquidation appears one off 
potentially toe most lucrative 
activities for small accountancy 
firms and . already excites plenty 
of professional jealousy. (A 
small North London practitioner 
launching . -a new -.“Insolvency 
Association ” received inquiries 
from 80 firms aB over toe 
country last- month). 

Bankers, accountants^ lawyers 
and- businessmen ran all be 
relied upon to fight their own 
corners. ...Less foreseen - but 
equally problematic, perhaps, 
ootrid be the Joss of political 
momentum which might resuH 
if potential supporter's of the 
Cork Report failed to see in its 
recommendations: toe kind of 
'sweeping reform toot could win 
• parliamentary time, - 

Defeat on either front woaW 
be an ironic fate far. a report 
which contains - to dissident 
minority view— -and vtfbich 
above all else, not rto -adjrmt 
one law here and another there, 
but to settle a wbole area of 
major company law -revisions 
for years to come.- . -i - 


Men & Matters 


Out of Court . 

Extraordinary scenes at toe 
extraordinary general meeting 
yesterday of Associated Com- 
iQiinications Corporation, the 
entertainments empire over 
which Robert Holmes a Court 
now rules. 

The meeting was called to 
consider the payment of a record 
£560,000 golden handshake to 
Jack GilL the group’s former 
managing director. And 
naturally, Ralph Quartano, chief 
executive of the Post Office Staff 
Superannuation Fund, which 
holds 1.4m non-voting shares in 
ACC, turned up for the event. 
His fund, with other institu- 
tional shareholders is trying to 
block the payment by legal 
action. 

But at the ground floor of 
ACC’s Marble Arch head- 
quarters. Quartano’s path was 
barred by a bevy of beefy men 
who looked as though they 
might oncq have been extras in 
an episode of The Saint 
The donnish, bespectacled 
Quartano was physically res- 
trained from entering toe meet- 


7H*, 

***** 

cents. 



"That’s where they’re dealing 
with the Argentine proposals” 


Ing — and others of ACC’s 11,000 
non-voting shareholders were 
also turned away. 

”1 think I am entitled to an 
explanation ... I would like a. 
word with the chairman,” 
Quartano demanded. But in 
vain. He neither got to see the 
chairman nor got into the meet- 
ing. 

By aU accounts, it was a cosy 
affair. Just eight of the 37 
voting shareholders attended to 
consider the GiU payment. The 
meeting adjourned, the board 
went into session — and a secre- 
tary emerged, to explain that 
there had been a failure of com- 
munications at Associated Com- 
munications. 

*■ Instructions given by Mr 
Holmes & Court have been mis- 
understood. . It was only the 
Press that were not to be ad- 
mitted." she said. Downstairs 
the sides insisted there had • 
been no misunderstanding 
about their instructions 
The Australian entrepreneur, 
who once said that he preferred 
to invest in public companies, 
seems now to be opting for pri- 
vacy. 


Flying high 

The “ plane with windows ” that 
Alexander . Haig insisted upon 
before setting out two weeks 
ago upon his marathon sfeuttie, 
and which has been home to 
him until his arrival back in 
Washington -is, of course, a 
truisty Boeing 707. 

Boeing ' brought.' out toe 
design .in the - mid-1950s and 
became the world's biggest jet 
aircraft maker on toe back of 
its popularity- .with airlines 
everywhere. The company tells 
me it is still refitting them with 
modern quiet engines— tor some 
airlines that cannot bear to give 
to em up for trendier designs. 

• A few 707s, now surplus to 
airline requirements, are to 
become toe ultimate status 
symbol as flying penthouses 
equipped with bedrooms, bath- 
rooms. dining rooms, lounges, 
kitchens, and offices, indeed all 


the elegance suitable for royal 
families, wealthy oil men, even 
an occasional Secretary of 
State. 

Middle East Airlines, a com- 
pany which has a reputation 
For adding a spice of Lebanese 
flair to its international busi- 
ness operations, is buying old 
707s cheaply — a complete jet- 
liner can be found for as little 
as $250,000 — and is converting 
them into aerial luxury suitable 
for up to 20 guests and a 
retinue of servants. 

The 707s are noisy and use 
•a lot of fuel. MEA does not 
believe such considerations will 
bold back customers. “In toe 
Middle East there are pien^ 
of. people for whom money is 
no object,” I am told. ' 


Shot down 

The 707 has a long history. But 
how. long? 

’‘Pan Am. You can’t heat 
the experience,” trumpets 
whole-page advertisements now 
runbing for that airline. 
Maybe. . . but you can knock 
the copy. 

Aviation buffs are cross with 
the U.S. airline for claiming 
that it launched jet passenger 
travel “ when other airlines 
could think no further than 
propellers.-' 

The late British Overseas Air- 
ways Corporation, long since 
vanished into the black hole 
called British Airways, began 
development flying of toe 
Comet 1 jet airliner in 1951 
when Pan Am was swinging its 
propellers. 

In May 1952 BOAC launched 
the world's first regular -jet 
passenger service between Lon- 
don Airport (as we used to 
call Heathrow in those string 
and sealing wax days) and 
Johannesburg, Pan Am was still 
swinging its propellers. 

Six years went by and in 
1958. after the Comet’s pioneer 
difficulties, BOAC was able to 
achieve a double first in jet 
travel with a transatlantic re- 
turn flight of the new Comet 
Jour between London and New 


York. Pan Am cooled its wings 
with propellers for a few more 
days before flying its own first 
transatlantic jet service with a 
Boeing 707. 


Security check 

Argeotina’s military junta may 
have tripped over its rifle by 
imposing a ban on aU EEC 
good®. Galtieri’s tft-for-tat 
embargo has baited a deal that 
. was presumably intended to help 
the generals sleep more easily 
at night. 

■The contract was for special 
bonded plastic identity cards for 
every man, -woman- and child in 
Argentina to be supplied by 
West- Germany’s Agfa-Gevaert. 
As well as a photograph the 
cards have computer-coded 
punched holes that would take 
Argentina’s internal security a 
big step forwards (or backwards 
depend mg upon bow you view 
these things). The police state 
would be plugged straight into 
toe memory hank. 


Fun fare 

Another story from my Andor- 
ran j ok ebook. Two gentlemen, 
ruddy of complexion and uncer- 
tain of step, waited impatiently 
at the bus terminus after a tong 
and hospitable evening. The 
clock struck several quarter- 
how® before they realised that 
toe fast bus had gone. ; 

Seeing several buses parked 
in the nearby depot., the pair 
derided to borrow, one and drive 
themselves home. A search for 
a suitable vehicle found them, 
however, nose the- happier. 

“At all, Frank.” said one, 
“and would you believe, it— n off 
a number 24 in toe whole 
damned place." 

“Never ntind.” . replied his 
companion- “let’s take a num- 
ber 11. get out at toq round- 
about and walk toe rest of toe 
way.” 


Observer 



In Australia, people know us simply a &4 : 
the National. And know, us extremely weft: . 
we've been a major.force in Australian . v 
banking for well over a century, with 800; 7; 
branches throughout ihisvastcountry. ; r; . r 

But international would be a more apt *■-. 
description of our standing. We're in the 
business of banking on a worldwide scafe,so^= 
you'll find our presence spreads far and wdo£ 
We have offices in London, New York/ - 7-- : -V' 
Los Angeles, Tokyo, Singapore; Hong Kong. . ' 
and Jakarta. And in Papua New Guinea, our 
subsidiary, the Bank of South Pacific, is at ’ ■: / - 
your service. / . 

On Australian matters in partfcular/^e'ra • 
tne bank to consult. We welcome enquiries ^ 7 . 
.on Australian business, trade, investmeritand 
immigration. .'V- 

From wherever in the w^d ypu 


* Arft-.- 



i 


The National Banlp 

of Australasia Limited - 

Chief London office: fr8T<*anhouse Yard, London EC2ft7A3 ; 
„ . Td: 01-6068070 

Head office: National Bank House, 50CLBourke Street, MdboqpTd 






I 


Financial Times Wednesday. April 21 1982 



Wednesday April 21, 1982 


N.: 


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The Asian Development Bank, set up fifteen years ago to channel funds from 
the world’s richer nations into emerging countries in the region, has reached a 
watershed in its career. As this survey shows, its policies and direction are the subject 
of intense debate among the principal suppliers of its financial resources 


..Arguments threaten 
| path of success 




& BY CHRIS SHERWELL 

pi THE ASIAN Development Bank, 
H=£ 15-years-old and well established 
was a multilateral lender to the 
world’s most populous con- 
tinent, has ■ begun to look 
distinctly unsettled over the 
past few months. 

Most seriously, it has become 
■' caught up in' a furious inter- 
national row over development 
aid which is leading to enforced 
adaptation of its policies and 
could threaten its continued 
success. The debate reflects the 
two faces which developing 
Asia presents to the world: the 
free-wheeling, free enterprise 
achievements of countries like 
Hour Kong, Singapore, . Taiwan 
and South Korea and the numb- 
ing poverty and persistent 
dependence on world support of 

the Tndian ' athen ntinwit 

countries. 

This has coincided with' the 
appointment of a new president, 
Mr -Masao Fujioka of Japan. Mr 
Fujioka, partly out of convic- 
tion and partly out of a cool 
recognition of which way the 
political wind is blowing, wants 
to pUsh the Bank in directions 
where it seems likely to be 
forced anyway. But in manner 
and character he is a complete 
' contrast to his fellow-conn try- 
man predecessor and the overall 
change has come as a shock to 
the institution. 

~ One intriguing side-effect of 
f this has been to raise the - 
f' question of whether the ADB 
is likely to keep its reputation, 
j. for being “a Japanese opera* 

F — — 


tion designed to benefit 
Japanese business." This image 
has always been slightly unfair. 
Pound for pound, Britain has 
actually done better than Japan 
out of contracts associated with 
Bank lending. But in a curious 
way TJB. influence on ADB 
policy has probably never been 
greater, paradoxically at a 
moment when America is deter- 
mined to curb its contributions 
to the bank's resources. 

The ADB’s access to funds 
expire at the end of this year 
and the most immediate conse- 
quence of the row over develop- 
ment aid has thus been to 
threaten the Bank’s financial 
base. Countries like the U.S. 
and Britain, committed to 
expenditure-cutting policies and 
wanting, greater value for 
money in giving aid, have 
challenged the now classic 
1970s view represented by the 
Brandt Commission report, 
which calls for a large-scale 
transfer,, of resources to the 
developing countries and major 
reforms of the global economy. 

These countries have instead 
adopted the international ver- 
sion of Reaganomics and argue 
that the “ magic of the market *• 
win conjure growth out of 
enterprise, incentives -and the 
avoidance of pl anning . In the 
ADB this view now seems to be 
in the ascendant; at least in 
relation to the bank’s soft loan 
window, the Asian Development 
Fund (ADF), which lends to 
the region’s poorest countries 


for periods of up to 40 years of 
zero interest. 

Tough limits on the TJB. con- 
tribution and a hard line from 
Britain mean that the ADF 
faces the prospect of receiving 
as little as $2.4bn for its 1983-86 
replenishment unless other 
countries boost the total higher 
by breaking the customary links 
with the UB. which determine 
their shares. The figure com- 
pares with an original Bank 
target of $41bn. 

In fact a breaking of links 
looks increasingly likely and a 
replenishment topping of $3bn 
is probable when donor coun- 
tries meet for the fifth time on 
the issue ahead of next week’s 
annual bank governors' gather- 
ing in Manila. But this would 
stHl barely maintain in real 
tenus the level of the previous 
1978-82 reple nishment of 
$2.15bn and depends principally 



on the goodwill and deep 
pockets of Japan, Australia, 
France and some other donors. 

It will also mean some tough 
decsions far the Bank and the 
poorest borrowing countries, 
whose development efforts will 
become more difficult to 
finance. With less money than 
planned available on conces- 
sional terms, the strains will 
increase on the Bazik’s ordinary 
capital resources — the funds 
from which the bank lends on 
harder terms — now a fixed 
rate of 11 per cent for periods 
of 15-20 years or more. 


These strains are likely to 
be m a g nifi ed by India's inten- 
tion to borrow from the Bank 
for the first time. New Delhi's 
borrowings will be made on the 
Bank’s harder terms, but the 
Bank's capacity to meet all 
these additional demands will 
depend crucially on negotia- 
tions on a third general capital 
Increase covering the period 
1983-87. This increase, how- 
ever, which will determine the 
amount the bank can actually 
lend on harder terms, is also 
likely to become bogged down 
in argument between hardliners 
and others. 

The Bank is proposing a 
125 per cent increase in sub- 
scribed capital, of which 10 per 
cent would be paid in. But 
there are suggestions, notably 
fTam. the UB., (hat this should 
be only 100 per cent, with zero 
physically paid in. The UB. 
also believes that ADB borrow- 
ings on the world's capital mar- 
kets, which use this callable 
capital as collateral, should be 
fixed at higher than 75 per cent 
of the capital subscribed in con- 
vertible currencies. 

The Bank is nervous about 
the implications of such pro- 
posals. A smaller capital in- 
crease would hit its lending 
capacity and a lower “pay-in” 
ratio would add up to 1$ points 
to borrowing countries’ costs. 
But it acknowledges the 
possibility of marginally in- 
creasing the “gearing ratio” 
winch fixes its own borrowings. 

With such arguments going 
on, it has plainly turned out to 
be the worst possible time for 
the Bank to seek both an ADF 
replenishment and a general 
capital increase. One portent of 
the consequences of limited 
future resources is already 
apparent, with certain develop- 
ing countries even having to 


curb their access to the Bank's 
soft and hard loan, windows. 

Thus Pakistan, normally 
entitled to ADF funds, is having 
to borrow money on harder 
terms. Indonesia, Thailand and 
the Philippines, all entitled to 
some ADF financing, must all 
now go only for loans at harder 
rates. Singapore and Hong 
Kong supply do not approach 
the Bank any longer. 

This process of maturation '- 
and “ graduation ” is something 
'Washington wished to encour- 
age. But the row over develop- 
ment aid not only threatens the 
size and scope of ADB lending: 
it also challenges the nature of 
its assistance and this too is 
undergoing a change under Mr 
Fujioka’s guidelines. 

A Reagan Administration 
study last year on UB. partici- 
pation in the multilateral 
development banks, while 
coming out as far less critical 
than its proponents hoped 
originally, cited two points of 
real concern; that the banks 
seemed more concerned with 
the quantity rather than the 
quality of loans and that they 
took insufficient account of 
country need or of alternative 
financing in deciding whether 
governments borrowed on soft 
terms — or indeed at all. 

The ADB had in fact already 
taken on board the implications 
of this line of thinking. Mr 
Fujioka has echoed many times 
the favourite U.S. theme of 
pushing hand for greater 
involvement of the private 
sector in tbe bank’s lending 
activities, notably through 
co-financing of projects with 
commercial banks and^ even- 
tually, direct or indirect equity 
investment by the ADB. 

The Bank's board is due to 
consider solid co-financing pro- 
posals in May, including a com- 


CONTftHJED ON NEXT PAGE 


ASIAN DEVELOPMENT BANK- 

($m> 

-THE 

RECORD 



RESOURCES AND FINANCES 

1977 

1978 

1979 

1980 

1981 

"I33ESI 

Ordinary capital resources: 







Authorised capital 

8,711 

9,407 

9,512 

9,209 

8,404 

— 

Subscribed capital 

6,961 

8,741 

8,861 

8£97 

8,297 

— 

Borrowings (gross) 

117 

390 

348 

458 

668 

3,123 

Outstanding debt (end of period) 

1,205 

1,610 

1,777 

1,872 

2,274 

— 

Ordinary reserve (end of period) 

146.1 

181JL 

250.4 

360.S 

512.0 

— 

Gross income 

168.9 

214.6 

260.3 

309.0 

347.1 

— 

Net income after appropriation to special reserve 52.7 

73.6 

101.1 

12GB 

139.7 

— 

Special fund resources (mainly Asian 







Development Fond): 

1,285.2 

1,846.7 

2.005L4 

2,916.1 3,184.7 

— 

ADF gross income 

22.6 

29.8 

38.0 

49.9 

51.0 

— 

ADF net Income 

15.6 

19.6 

22.6 

29.7 

25B 

— 


LENDING ACTIVITY 
Ordinary loans: 


Number of loans 24 31 29 29 38 317 


Amount of loans 


614.6 

778B 

83 SB 

958.5 1,146.7 

6,799.4 

Disbursements 


273 

295 

361 

429 

518 

2,822.6 

Special funds loans: 

Number of loans 


21 

22 

29 

30 

27 

246 

Amount of loans 


271.8 

380.5 

416.3 

477.2 

530.9 

2,971.5 

Disbursements 


84 

167 

125 

150 

149.2 

S8G.9 

Technical Assistance Fronts: 

Number of projects 


42 

47 

57 

56 

49 

424 

Amount of fronts 


7 B 

11.1 

13J9 

14 JS 

14B 

90.2 

Projects for which loan approval given 


41 

51 

54 

58 

54 

509 

Source: Asian Development Bank. 


| CONTENTS 1 

Funding arrangements 


n 

Indonesia: Broader nse of loans 

V 

Profile: Masao Fujioka 


m 

Aid strategy: Co-financing arm 

VI 

Profile: Ed Roberts 


nr 

India: Decision to borrow 

vn 

Thailand: Bangkok water supply 

Sooth Korea: Springboard for exports 

IV 

IV 

Energy: Diversifying lending 

vn 

Bangladesh: Among beneficiaries 


IV 

Opportunities: Competitive game 

vm 

Philippines: Rice fields flourish 


V 

Port Qasfm: Rival to Karachi 

vm 

Malaysia: Jungle to farmland 


V 

Staff: Competent but frustrated 

vm 



In the bond business, 
leadership has 
its distinctive form. 

The success of a bond issue does not 
depend on precision and expertise alone. 

Creativity and a gift for innovation are 
decisive factors, without them there would 
be no new impulses for this market and our 
clients. 

That's why many prime borrowers regular- 
ly entrust us with the management of their 
activities in the international capital market 
Investors, too, have learned to have con- 
fidence in the borrowers for whom we 
arrange new issues. They also have become 
aware of the importance we attach to the 
maintenance of secondary markets. Even in 
difficult times. It's a tradition with us. 

Put us to the test. 


v 


Deutsche Bank 

. Acentury of universal banking 

Central Office: Frankfurt am Main/DOsseldorf. New Issue De- 
partment Frankfurt (611) 2144474. Bond placement and bond 
dealing: Frankfurt (611) 2144391 or 2144411, BOsseldorf 
.(211)8832531 or 88325 65, Mannheim (621) 199431-439. 
London (1} 2834600, New York, Atlantic Capital Corporation 
(212) 3635600. Hong Kong, DB Finance (5) 255203. 








Financial Times Wednesday April 21 1982 


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A ST AN DEVELOPMENT BANK H 


Serious problems of finance have to be resolved in the near future 


Partnership for progress in Asia. Uncertainty hampers 

funding 






&: 








»■ 


.#*■ 
5* ^ 


g « 

Mt** 


We are Japan’s four leading securities companies, 
and since our underwriting of the Asian Development 
Bank's first yen-denominated bond issue for public 
offering December 1970. we have been actively en- 
gaged in such fund-raising activities for the develop- 
ment of the Asian region. 

Today as Japan’s relations with the countries of Asia 
become increasingly closer and our role in Asian 
development takes on ever greater importance, we 
renew our commitment to forge stronger bonds with 
the countries of Asia in a partnership for progress. 


The Nomura Securities Co., Ltd. Daiwa Securities Co., Ltd. 

Yamaichi Securities Company^ limited The Nikko Securities Co^ Ltd, 



We have a thorough knowledge of Europe 
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Want to increase your business between 
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A European bank, Banque Bruxelles 
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Its General Manager: .Mr Arie 
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The complete backing of a 
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Banque Bruxelles Lambert is one of 
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Just as Belgium, its home country, is 
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This is precisely the reason why BBL 
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But, in addition, BBL is also part of a 
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B 

i 

a 


IT MAY be going' a little far 
to suggest that there has been 
a crisis m recent months over 
the Asian Development Bank’s 
future funding but the pall of 
uncertainty hanging over the 
institution has been palpable. 
Even now the outlook remains 
unclear. 

Ahead of next week’s annual 
governors’ meeting the re- 
lesishmeirt of the Asian 
levelopment Fund. (ADF), the 
Bank’s soft loan window, had 
still not finally been settled. 
But it was certain that live end 
result would fall weH short of 
the Bank’s original hopes. This 
alone promises difficult deci- 
sions for which there has been 
little preparation. 

In addition, plans or a 
general capital increase look 
like becoming bogged down in 
argument There are doubts 
over its size, the degree to which 
it should physically be paid in 
by the donors, the amount of 
ADB borrowing on international 
capital markets which it would 
entail and the resulting cost of 
borrowing for the Bank’s deve- 
loping member countries. 

• The ADF replenishment 
question should have been 
settled at meetings of 17 deve- 
loped member countries in 
Geneva last July and in Can- 
berra in November. Subse- 
quent meetings hare taken 
place in Paris in February and 
in Washington last month. The 
issue is now due to be thrashed 
out finally at a session before 
tiie governors’ meeting. 


West Germany. Because the 
contributions would-be volun- 
tary and classified outside the 
basic replenishment, the 
burden - sharing mechanism 
would technically remain in- 
tact. But for aU i practical pur- 
poses it is being jettisoned; 
some countries, wi the words of 
one Bank official, have come to 
regard the mechanism as less 
important than the fate of the 
ADF and o£ the poorer 
countries which need its 
resources. 

With the original ADF target 
of SAlba thus consigned to 
history and a figure above $3bn 
still finally to be clinched, some 
tough decisions are looming. In 
the first place some of the 
poorest countries will have to be 
content to borrow less money 
on concessional terms than 
planned and try to borrow 
relatively more on harder terms 
if they are to maintain their 1 


for ADB borrowing on the the 10.1 per cent 
world's capital markets. ' July, partly as A 
' la fact it is not yet settled' costs of Its- own 
that this third general capital but also, to Mt Fujii 
increase wiQ be 128 per cent 
There is also a suggestion that 
the increase, be limited to 100 
per cent Much hinges on the 
views of the UJS. and Britain, 
which are expected to take a 


to ensure future 
and stability. 1 

The figure; 
a formula, is in 
promise, between 
and developed 




relatively ' hard line in the- - less than, the 
negotiations. Subscribed capital figure -Of 11.6 per ^et 1 at 


at December 31 last stood at 
$S.3bn. 

Nor is it settled that con- 
tributors will pay. in just len 
cents in every dollar, as is 
customary. Although, this Is the 
Bank’s proposal, the U.S. would 
like to see a zero figure. A 
likely compromise is said to be 
74 cents, putting the ADB in 
line with tile World Bank and 
its Western Hemisphere 
counterpart; the Inter American 
Development Bank. 

One senior ADB official dis- 


25 


$ bn 


BORROWINGS 


Outstanding amount 
at end of year 

Annual 

borrowings 


Replenishment 


The Bank, with the hoard’s 
endorsement, originally pro- 
posed a replenishment of 
$4.1bn, representing a sizeable 
increase on the S2.l5bn total of 
the 1973-82 replenishment But 
in Paris the U.S-, having re- 
assessed its policy towards the 
multilateral development banks, 
offered only $130m a year over 
the four years 1983-86. 

This represented an increase 
on Washington’s previous 1978- 
1982 contribution, and made the 
ADB an exception to its counter- 
parts elsewhere, which faced 
cuts tinder President Reagan's 
tough budget policy. But under 
the burden-sharing mechanism 
which customarily fixes the U.S. 
share at 22 per cent it entailed 
an overall -ADF replenishment 
of some $2 .3 bn to $2.4bn — a 
substantial drop in zeal terms. - 
The U.S. has since stuck 
broadly by this position, offer- 
ing only a token increase. This 
has forced some other donors 
to consider breaking the link 
determining their contribution, 
with. -the aim of boosting the 
overall replenishment figure 
above ?3bn. This still disap- 
pointing figure would at least 
maintain ADF funding at the 
same level in real terms as in 
the previous five-year period. 

Japan has said it is ready to 
match the total additional ’ 
pledges made by other willing 
countries, which could mean 
that Tokyo could contribute any- 
thing. up to $350m -on top of its 
one-third share of around 
$7S0m. Australia and France 
are among donor countries pre- 
pared to volunteer' supple- 
mentary amounts on top of 
those set by the U.S. contribu- 
tion. Britain is thought to have 
remained firmly in the U.S. 
camp and adhered to its hard 
line. 

This idea of additional con- 
tributions follows on a larger 
scale tiie precedent set by the 
last replenishment, when the 
basic $2bn figure was boosted 
to $2.15bn by supplementary 
contributions from Japan and 


present, it can be a heatfj’Tmr. 
den for a country given 
-until recently, bo rioyre ts Trid 
to bear the cost of exchange 
rate fluctuations in the forrfgn 
currencies they received. Under 
a new scheme starting an^^iy 
1 these costs are to be stated 
by. all countries under au-iex. 
change risk pooling- system.. 

• The 11 per rent fighre is Aso 
well below the rate .at which 
some of the ADBto member 
countries could borrow. on&he 
yen or Swiss franc markets, Sor 
example, although such bomw- 
ings would be at a floating rate 
and- short term, whereas the 
ADB lends at fixed cate and 
long term. 

How much the bank borrows 
on the capital. .markets is 
limited by the amount of capital 
subscribed by member - r coun- 
tries with ■ convertible curren- 
cies. But the Bank. borrows; only 
75 per cent of this Emit under 
its .own internal; a rr a ngement 
and this too Is 'coming under 
attack -from the U.S., which 
argues that the Bank is bring 
too conservative- ' r 
The bank contends that this 
is not a constraint os inability 
to go to the capital markets and 
that in an era.-: of currency 
fluctuations some margin -is 
needed. But it also acknowl- 
edges that some increase is 
passible if it is done slowly with 
due regard for market seisi- 
. tivities and provided the out- 
look is stable on -toe foreign 
exchange front - 

. Borrowings " 

The ADB plans to go to the 
. markets this year for $S50m of 
borrowings at an average rate 
of 10.5 per cent continuing the 
rising trend of recent years. 
Last year the total was £66&5 jb 
at an average cost of 9.3 per 
cent and in 2980 8457.8m. The 
overall total raised by the end 
nf last year amounted to almost 
1 g&ltott, -- 'By - - 1987- •- the Bank 
... -V’ ^experts to be -rajslng^Sm. per 

development effort. Countries likes -ibis trend, arguing 1hat. ?^ r - J , ' ^ ^ i 1- ... 

previously with access to pm-.. it has a deleterious impact on, . - , r : p° factors ye ar-tim Bank has 
dple to concessional .loans' thecapataimarkets’ perception Jaisea Y20bntbrm^h itseighth 
through the -ADF may have to of ' the Bank.. In his: view the- . hond:;issue_ m _Toiw> and it 



1969 s 70 *71 *72 *73 '74 'TB ’76 


79 *80 *81 




forgo this option altogether. -bask .already has problems to 
The Bank’s lending decisions this area- bee anse.it. is based: 
will be rendered still more far away to 'Manila and should 
difficult by the fact that India for . emphasise -the .' need tor strong, 
the first time wishes to start- shareholder support . 
borrowing from the Bank’s , A drop below 10 cento he 


ordinary capital resources — that 
is, 00a its birder terms— up to a 
level of about $2bn over the nest 
five years. India needs to borrow 


plans another Y40bn_ It also 
made its first long-term borrow- 
ing to the Dutch domestic mar* 
ket to- February; tor FI. 100m. 
The$85Gm figure also includes 
an offering at - some point of 
about to the UJS* the. 

first time since 2976 tiiat tiie 
bank has gone to tire New York 
market.:. • 

One particular problem to the - 


says, might be viewed as a sign 
of. -weakening resolve on the 
I»rt : of . its members,/ He . cites 
the' U.S. Treasury report on 
because the- World Bank’s soft . participation ih the multilateral 
Joan arm, the - International development hanks; which tore* J?® 

Development Association, from sees the phasing-dawn and' : 
wtoch New DeHu is a major eventual elimination ..df the SSS? hift 
borrower, also faces severe cuts, paid-in proportion 'of subscribed 
All this will impose additional capital. Immediate elimination, 
strain on the ADB’s lending and even a drop, he feels, would 
capaoty at a te.aha there ta tto, costly ie- tenea ct - 

tirroughout the Bank. The Teal 
consequence of a change, says 
Ed . Roberts, the Bank’s 
Treasurer, would hot he in the 
markets but among the borrow- 
ing countries. If the UE. 
prefence went through, be 
says. it could add at least half 
a point and as much as 1$ 


are already several unanswered 
questions about the Bank’s pro- 
posed general capital increase, 
which will ultimately determine 
how much the bank can lend 
on harder terms. 

Mr Masao Fuji oka, the ADB’s 
president, went on record to 
New York last month as pro- 
posing an increase in the hank’s 
capital by 125 per cent for tile 
1983-87 period. Ten per cent 
of this would be paid in, he said, 
while 90 per cent wotild be 
callable capital as collateral 


to long-term time deposits, 0 ; 
because ft has been badly sitetf 
to Manila, -to .mpiipnlate the 
funds effectively:, The ~ bank ir 
now hoping to improvetins. Ti» 
appointment • of. Ed . . Roberts, 
who understands the operation 
of the world’s markets',, hr-betog 
welcomed and toft. Bank is 
hoping to upgrade itsiebamtdid- 


borrowing costs, cations with the odtShto world 
The Bank in fact raised its in the coming year,' 
lending rate at" the beginning ... V • 

of the year to 11 percent from . \Jnns.; 



Arguments threaten path to success 


CONTINUED FROM PREVIOUS PAGE 


plementary financing scheme 
under which, for particular 
projects, the ADB would lend 
both on its own terms and on 
commercial terms. The latter 
would then be passed on to com- 
mercial banks with the stipula- 
tion that'a borrower’s failure to 
repay would amount to a default 
against the ADB. Proposals are 
also emerging for equity invest- 
ment based on the World Bank’s 
experience but are far Jess 
advanced. 

As part of his drive to involve 
the private sector more Mr 
Fujieka also wants to see the 
commitment to energy projects 
grow, though with relatively 
less emphasis on power genera- 
tion and a relatively greater 
commitment to “ harder " parts 
of social infrastructure like 
roads, rather than health or 
education. Over the past 15 
years the biggest proportion o£ 
lending has been on agriculture 
The U.S, would also like to 
see greater "conditionality" in 
the lending policies of the multi- 
lateral development h anks -- in 
other words greater insistence 
that borrowers adopt certain 
economic— or at least pricing 
and tariff— policies. This is 
something the ADB is already, 
doing in certain areas of its pro- 
jeet lending, notably In the 
energy and water supply fields. 

. But the Bank is not lending on 
a big enough scale to became 
involved in The sort of struc- 
tural adjustment lending which 
allows the .IMF or World Bank 


to insist tiiat certain- broad 
macro-economic policies be 
followed by a borrowing 
government 

The Bank under Mr Fujioka 
is also keen to publicise the 
business' opportunities open' to 
.companies in the doner 
countries under the Bank’s in- 
ternational competitive bidding 
policy for contracts associated 
with its lending. Certainly toe 
image of toe ADB has been a 
little unsatisfactory in' this 

respect. 


Perceptions 


Public perceptions tort .the 
ADB primarily benefits Japan- 
ese business seem at first to be 
borne out by toe figures. 
Japanese companies had won 
3L4 per cent by value of the 
contracts concluded for goods, 
services, civil engineering and 
consultancy by the end of 1981 
— $1.4bn out of a total of $45bn. 

But this broadly matches the 
one-third share of funds con- 
tributed by Japan to toe Banks 
ordinary capital resources and 
Asian Development Fund — a 
share which, in the case of the 
ADF, Is likely to be exceeded to 
the coming replenishment 
because of toe small UJS. con- 
tribution. 

Moreover, a look at the actual 
figures shews that Britain, alone 
of donor countries, managed to 
win contracts to a- -.value 
($23Sm) greater' than its total 
contributions to the hank 


(S194m). Britain, together with 
the U.S., has also done particu- 
larly well in winning contracts 
for consultancy but curiously 
these countries have- not auto- 
matically secured the project 
contracts that often follow such 
' work. : ' 

' 1 This is somefting the UE. In 
- particular ..woald like to remedy 
and toe Bank Is now advertising 
more widely details of . toe con- 
tracts on offer .under ^ Its lending 
programmes -in ah effort to 
stimulate . competition and 
redress the apparent imbalance. 
Mr Fujioka himself has also 
vfcfted Europe and the ILS. to 
spread the' word, in effect taking 
the Bank to potential con- 
tractors rather than the other 
way round. 

. This is typical of the man. Mr 
Fujioka is determined to' push 
toe Bank to directions he sees fit 
and is using all-the-tools athis 
disposal, todadlhg .toe ..Press, 
which he has promised to mpet 
regularly to Manila. His arrival, 
however, has- had 'a 'strong im- 
pact on bank staff.- . 

Senior offichtifi say they hare 
been surprised by Mr Fajioka’s 
growing habit of effectively set- 
ting or a nnouncing hank po&ey 
before It has been finally cleared 
at the highest levels. Their 
precise .reaction appears to 
depend on whether their ideas 
have been taken up or not One 
economist, for example, to 
excited about Mr Fujioka’s 
eagerness to establish toe Bank 
.as an informational source for 


an A sSa, satffagr- it sp. * 

development instortiwi * 
rather than justaJendiBg^Kti-; 
tution. Another cfficdM to dis- 
mayed by a to«speotive : ; re*" 

. organisation of fcis : department, 
ordered without Consaltatioh- 
All have reartftdv waifiy- to Mr 
Fujioka’s plans to efeeamline 
•the Bank by. v gettShg“ rid . of 
“ dead wood.” . ’ f .• •' 

If all these ■ are 

leaving- - the - Baik \ aomrtidrit 
unsettled ■.they may riso 
revitalise it Tf .toe limited 
resource ttoowiivuip' to 'th8 

present . x^pesskmaxy ton® 5 
mean worthwhile ‘devetopment 
projects cost- .more or go- 
unfunded they' wfH also 
a new * discipline- tutor toe 
Baak^i work and --falmdate 
efforts to find Lreto soorees ot 
funds. •. 

But It is- far' firom ehvitHis 
that the currency - fashioD^bi c 
theories, about aid strategy off K 
any more reliable guide r-.to 
to deyelopaneht- 
those ; wlflch . have 1 rfrrauy 
established. il>B -'a* 
effective ' multilrteraL lrtiffiog 
agency. Rl<* 

back on toeir multilatersi aid , 
for the imdeEstan<to&to . 
that they ' cannot' 11 
domwtk^y sffil :.rlsk ' 
eventual ^orth-Souto cooB^ 1 : -. 
tation with tow oduntriw Jt 
they cwuKrt' conqtt^ theix ' 
economic,- . probltons ’V : rtri 
maintain an open and growing' 
intern atkmal trading system*- 












PROFILE: ED ROBERTS 





a ? 

■> j 


Treasurer with push 


; 

t-d 


Bukit Ibam township lies in the area of Malaysia’s Bhang Tenggara project — one of the major schemes financed by trie Auts 

PROFILE: MASAO FUJIOKA 


ED ROBERTS has adapted 
easily to life in Manila and 
to his work as the ADB’s 
treasurer since arriving in the 
Philippines some six months 
ago. Be sports a tan and a 
powder-bine barong tagalog 
(traditional Filipino shirt) 
and talks confidently of the 

intricacies of the Band's 
' finances. 

Although a New York 
banker who plainly knows hLs 
markets, Roberts’ background 
was originally law, which be 
studied at Duke in North 
Carolina after college in 

P ennsy lvania. He has worked 
in Tokyo and Australia but 
his contacts with ADB began 
in the 1970s when he was with 
First Boston and latterly 


Stylish top man heads into time of change 


EARLY LAST month Mr Masao 
Fujioka, ADB’s President, was 
browsing through the sheaf of 
papers and letters on his desk 
when he came upon a candid 
memorandum from one of his 
Canadian staff. The 'note made 
manifest the member’s anten- 
tion to quit ADB. The reason 
he gave was. that 'flue Bonk 
seemed to have a' half-hearted 
concern for the welfare of its 
employees. The complaint 
centred on the Bank’s housing 
allowance, which the Canadian 
thought was unrealistically low 
when viewed against the rising 
rents in Manila. With the 
allowance he was getting, he 
said, he could afford only a 
small old house. 

The afternoon of the same 
day the ADB president was 
telephoning the sender of the 
memo asking to he shown the 
house. He did see it and that 
short trip set in train a series 
of “ Fujiokan ” moves that 
shortly resulted in a message 
to the Philippines’ Prime Mini- 
ster, Mr Cesar Virata, urgently 
asking that the ADB he allowed 
to own a tract of land which it 
could develop into a bousing 
estate for its expatriate staff. 

If the incident does not show 
the president's concern with 
staff problems in the best light 
it at least demonstrates his 


agility — sometimes bordering on 
impulsiveness — when it comes 
to making decisions. In private 
circles in the Bank this deci- 
siveness has been labelled as 
“ Fujiokan.” 

His desire to get things done 
quickly brings with it a 
management style that is 
diametrically opposite to that 
of his predecessor, Mr Taroichi 
Yoshida. Some senior officials 
recall that Mr Yoshida was 
both conscious and cautious of 
the bank’s “ Japan ese-ness ” 
and deliberately kept a low pro- 
file by letting ■ Ids two vice- 
presidents — an American and 
an Indian— run the show. He 
encouraged the two top 
officials to evolve policies; deci- 
sions were arrived at through 
a consensus. 

At the other end of the 
spectrum is . the 57-year-old 
Fujioka who is his own man, 
has his own visions of the 
Bank's direction -and his own 
notions as to how to steer the 
bank towards that The Bank 
staff is divided between those 
who see Fujioka’s style as a 
badly-needed shot in the arm 
and those who fear that be is 
moving in too quickly and may 
makp some enemies.. One of 
those in the latter group has 
laid a bet that in no time 
Fuji oka wBI come Into strong 


Mr Masao Fujioka 

friction with some of his 
officers. 

Bank officials say that policy 
decisions are now often handed 
down from the top. They do 
not exactly disagree with 
Fujioka’s thinking but accord- 
ing to a staff member, “It is 
good for morale to be consulted 
about bank matters and to be 
able to give our opinions.” 

Another official, noting that 


some senior staff have some- 
times been bypassed, said: “ He 
is less concerned with being a. 
gentleman. ” Yet another, refer- 
ring to the President's celerity 
and direct manner, said: “ I 
don't think he’s Japanese at alL" 

Many are pleased with the 
firm bands guiding the Bank 
today. "We’re going places — 
and fast at that said another 
offi cial- ' Confidence in Mr 
Fujioka appearently stems from 
the belief that he is not new to 
the Bank and that, having 
viewed it as' an outsider, he’s 
coming bade to it with a fresh 
outlook and a better perspective 
of its problems. In 1966 
Fujioka was loaned by Japan’s 
Minis try of Finance’ to the com- 
mittee which prepared the 
establishment of the ADB. He 
was then a director of the Mini- 
stry’s International Finance 
Bureau. He became the Bank's 
first director for a dminis tration 
and laid the groundwork of the 
Bank’s organisation. 

He was part of the Bank dur- 
ing the first three years of its 
existence and he looks back at 
those years as the most hectic 
period of his life. “ I worked on 
the compilation of the budget, 
on organisation of the. bank and 
on a series Of administrative 
procedures," he said. 

In the Intervening years 
before his reunion with the 


bank he was back at his coun- 
try’s Finance Ministry as 
Director-General of the. Inter- 
national Finance Bureau. At 
the same time he was executive 
director of the Export-Import 
Bank of Japan and of the 
Japanese International Co- 
operation Agency (JICA). Back 
m Tokyo he was able to look 
at ADB’s operations from an 
outsider’s viewpoint. If he had 
criticisms of the bank’s proce- 
dures he is now in the best 
position to work on them. 

Fujioka comes back to the 
bank at a time when its donor 
countries face a creeping sense 
of “ foreign aid fatigue.” 
Financing, particularly for its 
soft loan window, is more diffi- 
cult to get and it bas to -depend 
more on the international 
capital market, where funds 
are a bit more expensive. 

“Fund-raising will be a top 
priority during my presidency 
and I believe that -the ADB 
should aim to borrow more 
capital abroad," Mr Fujioka 
said. He therefore wants to 
promote the bank's image as a 
sound institution. He himself 
is spearheading the image- 
building process. . Never before 
has an ADB President — all 
of whom have been Japanese — 
gone on an international speak- 
ing spree. It is no mere 
coincidence that Mr Fujioka 


addressed prominent groups in 
London and New York, two of 
the world's biggest capital 
markets. Since he assumed his 
post last November ADB has 
had a high profile in the 
international Press. 

Another area close to Mr 
Fujioka’s heart is the Bank’s 
administration. “ Another top 
priority for me is to ensure 
that the Bank acquires the best 
people to work for it.” he said, 
adding that the Bank needs to 
recruit more than a hundred 
staff in the near future, includ- 
ing replacements. This has sent 
shivers through the bank staff 
— from clerks and the ubiqui- 
tous secretaries to senior staff 
members. Not a few are con- 
vinced that Mr Fujioka, who 
was trained as a pragmatic 
lawyer at the University of 
Tokyo, is set to cut administra- 
tive costs and to rid the Bank 
of redundant staff. 

His presidency will be 
dramatic not only because of 
his remarkable style but 
because be is head of a bank 
that is at a turning point. The 
next two years will be a water- 
shed for- the bank — its 
organisational structure will see 
some major changes and, more 
significantly, its operation will 
see some redirection in the 
face of its own financing 

aifficu,ttes - Emilia Tagaza 


with Lehman Brothers. He 
handled the ADB’s dollar, 
bond issue in 1976. 

Roberts’ biggest problem is 
to improve the management 
of the Bank's own portfolio 
— a figure expected to climb 
to $U>n by 1987. “We have 
50 nr CO different institutions 
giving market reports from 
ccross the world,” he says. 
11 We need to talk to a lot of 
people and the telephone 
system here is not up to it. 
We must organise s°od com- 
munications out of here. 
There’s a big opportunity lost 
in not doing so.” 

Roberts will not admit to 
it bnt that cost is privately 
reckoned by ADB officials to 
have become almost intoler- 
able. Indeed, they say that 
is why he has been appointed. 
From all accounts he is pro- 
ceeding with considerable 
gusto. 

In trying to anticipate the 
course of the world's financial 
markets while pla nn ing the 
Bank's borrowings, Roberts 
makes the conservative 
assumption that any particular 
market will suddenly “dose 
down,” as he puts It, to an 
external borrower like the 
ADB. “It’s the job of the 
treasurer to be conservative,” 
he says. “We must prepare 
for the worst possibilities or 
look foolish if we have no 
fall-back position.” 

On the hank's planned dollar 
bond offering this year 
Roberts acknowledges that 
this is not absolutely neces- 
sary now. “ We’d Ukc to 
build up there [in the U.S.] 
as a backstop.” he argues. 
“ We haven’t been there for a 
while.” The UK market is also 
looking more attractive, he 
says. “But we don't want to 
overload the borrowing pro- 
gramme with high coupon 
debt” London's queueing 
system is also a disadvantage, 
he says. 

Why did the Bank make its 
Dutch offering in February? 
“ The Charter says we should 
diversify our currencies,” says 
Roberts, “and the market 
there is interesting in ex- 
change risk terms.” He also 
believes it is important to go 
to a domestic market direct 
and get better contact with 
people there rather than 
simply deal through the 
Euromarkets. 

Roberts acknowledges that 
the 11 per cent the bank cur- 


Mr Edward Roberts 

rently charges member coun- 
tries borrowing from the hard 
loan window Is a compromise 
between a low figure of about 
10.4 per cent based on the 
ADB's borrowing costs and a 
conservative high figure of 
dose to 12 per cent. 

" We don't have to have 11 
per cent.” he says, “but it 
shows the capital markets that 
we have long disbursement 
periods, that we recognise we 
live in uncertain times and 
that there Is a need for extra 
margins.” 

In this respect he sees Im- 
portant implications for the 
hank's forthcoming general 
capital increase and for the 
qnestion of what proportion 
the donors actually pay in. 
He says he’s far more wor- 
ried about the resulting cost 
to the borrowing member 
countries of a fall below tbe 
present ten-cents-ln-the-dollar 
level paid in than about the 
impaet of such a lowering on 
the capital markets. “It 
coaid add np to 11 points 
to tbeir costs,” he says. As 
for the ADB replenishment, 
his view is straightforward. 

“ People got hnng up on that 
$4.1hn figure. Well be short 
on it, and a lot will depend on 
[ADB President] Fhjioka’s 
preparedness to say: "Let’s 
get on with it” The ex- 
perience of the past six 
months suggests that Roberts 
will push hard for the bank 
President to do just that 

c. s. 


At the PICC, marvels 
come in many forms. 

There is the 4,000 capacity 
Plenary Hall. 18 meeting 
halls. A reception hall to fit 
5,700 people. Wireless 
simultaneous interpretation 
system. 

But that’s not all there 
is to marvel at. There is 
cosmopolitan Manila 
bustling with bargain- priced 
entertainment, shopping 
and grand hotels. And a 
country that makes you 
feel at home with her 
smiles. 


From convention marvels to marvelous bargains. 


.\ 


Philippine International 
Convention Center 

The Convention Capita! of Asia. 

P.O.Box 727B. MANILA «]feL 832-03-09 
Cable Address: PICC. MANILA 
- Tbtet: 64234 PiCCPN 


r YES. Our company is interested 
in knowing more about PICC: 
please send us a brochure on 
the marvelous facilities we can 
avail of. 


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TFl FPHnNF/m m- Ntw 





Financial Times Wednesday April 21 .1982 


ASIAN DEVELOPMENT BANK IV 




s. 


Throughout the region ADB is involved in many projects designed to improve the economy and living standards 
of developing countries. A selection of these schemes is described on this and the following page 




Secure water supply for Bangkok 


Thailand 


rises asd which would generate 
local currency revenues to help 
cover future capital costs. 


BANGKOK’S intricate water 
supply project, designed to 
bring safe and reliable water 
to most of the 4$m population 
of Thailand’s capital, has an 
unusual status inside the Asian 
Development Bank, which has 
supported the plan so far to 
the tone of $87.6m. “It helped 
bring down the Thai government 
last year,” claims one senior 
official in the ADB department 
responsible for the project 
"Water prices had to be put 
up and the government fell" 

Last year’s April Fool’s Day 
coup was in fact a more com- 
plex affair than that Earlier 
price rises for petrol, electricity 
and the telephone also helped 
explain public apathy towards 
the ousted government The 
coop, which eventually proved 
abortive, was also attempted for 
political as well as economic 
reasons. 

The ADB official comment 
none the less underlines the 
Bank's general sensitivity about 
its involvement In economic, 
and especially pricing policies, 
through its project lending. In 
the particular case of the Bang' 
kok water supply project ABB 
loans did not specifically re- 
quire increases in water rates. 
But financial covenants did 
demand rates of return on the 
investment which entailed such 


The Bangkok project, part of 
Metruuolitaa Water Wonts 


a Metropolitan Water Wonts 
Authority (MWWA) plan to in- 
crease the capacity of the city’s 
water supply and improve its 
distribution and quality, offers 
a welcome environmental Im- 
provement in a country whose 
whole community life revolves 
round the supply of water. 

The previous antiquated and 
poorly functioning system, 
whose leaking pipes often 
crossed with the sewerage net- 
work, served only a small pro- 
portion of Bangkok's people. 
Others depended on wells or 
on the Chao Phya River for 
their supplies. 

One result of the increasing 
number of welis has been a high 
degree of land subsidence — 
Bangkok Is being called the 
Atlantis of the Bast because it 
is sinking into a bowl shape 
at 14 times the rate of Venice. 
Large areas of the capital are 
expected to be between 10 cm 
and 100 cm below sea level by 
the end of the century, since 
some parts are subsiding 12 cm 
a year. Moreover, the city as a 
whole Is becoming increasingly 
prone to serious flooding during 
the monsoons. 

A key principle behind the 
Bangkok project is thus to stop 
ground water being pumped 






• . ; sn*s8 w . 

'■■■■' "■ 

" £s;5w!»-j» 


Laying pipe for the Bangkok water scheme 


out in critical areas by indus- 
tries and domestic users, and 
to replace these supplies with 
surface water. The project is 
crucial if Bangkok’s rale of 
subsidence is to be stowed. 

By the time Stage 1 of the 
project is completed in 1985 
4.1m people — about 84 per cent 
of the projected population — 
will benefit directly from a 
central water supply system. 
Originally an ADB loan of 


¥19. 5m, together with a $55m 
loan from the World Bank, was 
to cover the whole of the first 
stage. But costs went through 
the roof with the rise in oil 
prices and Stage 1 was split 
into two phases. 

The first was completed In 
1979, close to its reassessed 
cost and schedule. In that year 
an ADB loan of $68m, together 
with YH.4bn (about $34m) from 
Japan’s Overseas Economic 


Co-operation Fond was put 
towards an upgraded second 
phase. In both phases the ADB 
loan came out of its ordinary 
capital resources. Funds also 
came from the Hud govern- 
ment and from internal cash 
generation by the MWWA 

The whole of Stage One 
involves the provision of over 1 
2-Sm cubic metres of water a . 
day to be treated, stored and' 
distributed to meet demand ' 
across the sprawling city. This 
has required construction of a 
raw water intake canal, a siphon, 
pumping stations, water treat- 
ment plants, reservoirs and 
miles of major tunnels. 

It has also involved, at some 
cost in traffic disruption, lay- 
ing hundreds erf miles of new 
trunk mains and distribution 
lines, rehabilitating existing 
lines and installing supply 
valves and flow meters. A few 
new and replacement deep 
wells are also being con- 
structed. Many of the con- 
tracts have gone to local 
companies. 

The second phase of this first 
stage is due to be completed 
by the end of this year but may 
be subject to some delay. A 
$25m loan for the last 198S-S5 
phase has stHI to be sewn up. 
Consultants are meanwhile 
working to prepare Stage 2 of 
the project, beginning in 1985, 
and designed to ensure supplies 
for another five to ten years. 

• cs. 



One of South Korea’s domestic projects — the Imjm River agricuiittral project 



tea Xu*.-: \ M B 




Among the biggest 
beneficiaries 




M H . • J 


ISP" 


Bangladesh 


jf&W 1 r fs '■ *•■ . - ^ ■■ ■: •*. 




hank’s interest and commitment m * nt *** to® f&r agriculture. 


” c* tore, health and education, 

countries, whose 90m mhabi- Bangladesh attaches importance 


tents are crammed into about to the Bank’s lending because 


55,000 sq miles of territory. of certain special features 


Witb the passage of time, aur services only get better. 
Our global network lets us serve you quickly, efficiently. 
Whatever your banking need, 
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Bangladesh became a member has. Contrary to many bilateral 
of the ADB tone years ag» in donors who confine their aid 


March. 1973, just 15 months Programme and commitment to 
after it became a sovereign only one fiscal year, the Bank 


nation. Up to December last it bas a multi-year planning 
had received from the bank a system Besides, its programme 


MITSUI TRUST 

mEMrawmus7*uMCM6 aura. 


total commitment "of to J® 3 ®* which provides funds for 

finance 44 projects. In addition commodity imports, is of vital 


Head Office: l-i, NlbenbastoWurwrecW 2-cbormn. Chuo-Hu, Tokyo. 
Japan. Tel: QW704511 Tata: J 28337 Cable Address: TO US TM IT TOKYO 


to its own lending operation importance to Bangladesh, 
the ADB has been co-financing w hicii has been having senous 


Japan. Tel: 0W7O-9511 Tehnc J 28337 Cable Address: THUSTMIT TOKYO 
London Branefe B9 Etehoosqete. London ECSM 3XD, UJC. 

Tel: 01JB38OB41 Tela*: B88679 MTRUST G , 

Cable Address TRUSTMiT LONDON ECS 
Mitsui Trust Bonk (Europe) SA: Awenue Louisa, 2B7-5te 5, 1050 
Brussels, BdBlum. Tel: 02-340-6050 Telex: 64720 MITBK B 
Cable Address: MTRUST bank 

New York Branch: enc wj« Traw oitw. Sw« mss. Maw "tev. n.y. locua. 

A Tui. 21;-T58-27S0 Tab-,: nc«0l MBCO UR 
cable AMI an- TRUsnar NeWtQflK 

Singapore Branch: Tare: 1502/3. DBS 6ute5«n. 6 Sheoten Way.Snjapore 0106. 
Sns^EOn?. Tar C20355J T-eftac 237S5 MITUIfB ftj 
Cable AtttMT. MITUrTRUST SINGAPORE 

Los Anpalra Representative Office: ttwur pian 60 * 0 * 3 . s«» isoo. sn 
Wisa Surin Snwt LA_ Ca«Ofnia. U SA Tfci - 1 >ii, 62^593? 

Trtat 9l03tt299l MSCO L3A. Ca6« Aalres: tflusnurr UK 
SSo Paulo Representative Office: Avctwh ftjisu izr-t B»t<ota Azam 23 And. 
Gap-01310 &ao Rluix S P. Bfjrf. 7*1. £64- 7583 7e«t T 1 34c» ASAH W 
Sydney Repros«ntailvo Office: 15 m cba. omiro to Miwi Snwt. 
Sytmof N aw. 2300. Austria T« Z3S-I i33 Mfr: 73W ATS STD AA 
Mitsui Trust Finance (Hong Kong) Urnlied: ism Row. Be* o> carton aukrig, 
BOea Vtai* ft»ac»w. Hcng Kong. Tat SCit>2> 7etec 6Wl J M7BHK HK 
Oatte Address MTFtUSIFNHK 


with official bilateral and multi- problems witii the commodity 
lateral sources. Among the assistance that finances its 


multilateral agencies involved coport bill and also^ generates 
are the World Bank, United counterpart funds tor 


Nations Development Pro- development 


gramme (UNDP), World Health Bangladesh was the first 


-Organisation (WHO), Interna-, country to receive an ADB pro- 
tional Fund for Agriculture gramme loan— in 1978— which 


Development (IFAD), as weil was followed by two more pro- 
as EEC and OPEC funds. gramme loans for agricultural 
The Bans has been support facilities and public 


as EEC and OPEC funds. 

The Bans has been 
consistently increasing its 
oonatotmentB to Bangladesh. 


health. The authorities are now 
trying hard to persuade the 
Bank to increase the amount 


During' 1981 its commitments number of programme 

rose $191m and this year they loans and expand the share of 


are expected to pass the 8200m local cost financing (LCF) of the 
mark. Because of its backward * financed projects. The 


state of economy, Bangladesh adverse aid climate in the past 
has been receiving otoy soft- two years together with, world- 



MALAYSIA 


U.S. $250,000,000 
Floating Rate Notes due 1992 

(redeemable at Noteholders option in 1989) 


‘Swiss Bank Corporation international Limited 


At gemene Bank Nederland N.Y 
Bankof America International Limited 
Banque Natiorialede Paris 
County Bank Limited 
Deutsche Bank Aktiengesellschaft 
Morgan Guaranty Ltd 
Nomura International Limited 
Salomon Brothers International 


Arab Banking Corporation(ABC) 
BankBumiputraMalaysiaBerhad 
Chase Manhattan Limited 
CreditSuisse First Boston Limited 
Lloyds Bank International Limited 
MorganStaniey International 
Orion Royal BankLimtted 
S.G. Warburg & Co. Ltd. 


NEW ISSUE 


APOesgsecorflksba^bemsr^thlsannounoeaterTtappea^aeamBtterofmatiorUf 


April, 1982 


wide economic recession have 
I badly affected the. country’s 
I export earnings. Izl 1980 the 
share of LCF In total Bank 
lending in Bangladesh was 18J3 
per cent compared to 28.8 per 
cent for Nepal and 20.9 per 
cent for Sri Lanka. 

While ADB has been Involved 
in a number of big projects, 
including the 5400m Ashuganj 
fertiliser project with nearly 

500.000 tonnes production 
capacity, the 5500m Chittagong 
urea fertiliser factory is by far 
the biggest and the most presti- 
gious project to its credit. The 
World Bank was the lead agency 
for the Ashaganj fertiliser 
plant, in which ADB’s contri- 
bution was only $80m, but ADB 
has become the lead agency for 
the Chittagong project, with a 
commitment of $72 m. 

The plant which was given 
the go-ahead late last year, will 
have an ammonia unit with 

1.000 tonnes-a-day capacity and 
a urea unit with 1,700 tonnes-a- 
day capacity. Foreign Exchange 
cost will he nearly 5300m. 

About $283m has already 
been committed by various 
multilateral agencies besides 
ADB. They indude the World 
Bank’s International Develop- 
ment Association ($15m), Abu 
Dhabi Fund for Arab Economic 
Development (825m), Canadian 
International Development 
Agency ($20m), Islamic Develop- 
ment Bank ($16m). Overseas 
Economic Co-operation Fund of 
Japan (860m) and Saudi Fund 
for Development (¥S5m). 

All ADB-financed projects— i 
like those of other institutions — 
are ■ suffering from chronic 
implementation delays. 

Unless the project implemen- 
tation processes are streamlined 
and delays cat, disbursement 
will continue to remain very 
low. Greater co-ordination be- 
tween the government depart- 
ments* concerned and agencies 
at all levels is needed if project 
implementation ^ to be 
improved. 

SAVED KALAMUDDIN 


■ . _ • • - 

Springboard for exports 


THE ASIAN Development 
Bank has become one of the 
largest sources of economic 
assistance to Bangladesh and teKn fund loana ^ 


because of its increased bank and has ■ become the 
activities in the country it will largest recipient of such loans. 


soon be opening a resident Xn line with the country’s 


mission in Dacca — the first general priorities about 5? per ! 
1 outside Manila. This reflects the cent of toe total Bank commit- , 


to one of the worWs poorest «3V SST 


SOUTH KOREA'S greatest 
natural resource is said to be 
her people. But the Land of the 
Morning Calm has also bene- 
fited considerably from foreign 
assistance, . including multi- 
lateral loans given by the 
Asian Development Bank to 
help the counties industry and 
agriculture. 

ADB support has helped 
South Korea establish its foot- 
hold in the Gulf and Asean 
markets for major development 
project contracts — in some 
cases at the expense of Euro- 
pean, U-S. and Japanese com- 
petitors. Likewise, ADB assist- 
ance has helped bring the ever 
security -conscious South Korean 
Government closer to its 
cherished goal of national self- 
sufficiency in grain. 

The Korea Heavy industry 
and Construction Company 
(KHIC) offers a good example. 
In December 1977 it won its 
first turnkey contract for a 
8250m f£143m) cement plant in 
Saudi Arabia. The company 
could not have bid had it not 
been able to manufacture 
cement-making machinery. That 
ahtiltv was gained through an 
ADB-backed expansion of its 
Gtnrpo plant south of toe 
capital, Seoul, in 1975-77. 

The ADB’s $174m loan, 
supplemented by local currency 
resources of $ 12.4m, allowed the 
Gunpo plant, which was begun 
in 1970, greatly to increase its 
size by adding machine asd 
fabrication shops to its foundry 
and forges. With its new capa- 
city toe plant could produce 
cement-making, paper-making, 
textile and petrochemical 
equipment It could also 
manufacture bulk-JiaraHine 
equipment, including overhead 
and container cranes, heavy 
construction and agricultural 
machinery, power plant and air 
conditioning equipment 

As toe plantis expansion 
continued with Government 
help, however, the company, 
then known as Hyundai inter- 
national, plunged into deep 
financial trouble. In 1980 it was 
taken over by toe state, re- 
named and restructured. 
KHTUs principal shareholders 
are now the Korea Development 
Bank (46.7 per cent), the 
Korea Electric Power Corpora- 
tion (26.5 per cent) and the 
Korea Exchange Bank (21.5 
per cent). 


Recovery 


Officials say that the Govern- 
ment takeover followed a 
period of overinvestment and 
rising costs at a time of grow- 
ing recession and that toe com- 
pany, which recorded losses in 
1979 and 1980, is on the road to 
recovery. But while the signs 
may be encouraging, it is 
probably too early to judge its 
pros pe cts. 

On the exports front KHIC , 
says it has secured a letter of 
intent for a $13m paper mill in i 
Indonesia and is bidding , 
strongly for two cement plants 
worth a total of more than i 
$50Gm in the Gulf and in an , 
Asean country. The company I 
also has good sales in pefxo* | 
ch em ic a l equipment and in : 
military hardware — notably for I 
the shoes and links used for | 
tank tracks. 

Domestically the company is 
said to be doing well with its 
industrial air conditioning 
systems, thanks to toe booming 
construction sector, and with its 
car coolers, which go into the 
locally-produced. Pony. The 
market for textile-making 
machinery has stagnated, how- 
ever, and parts erf toe Gunpo 
plant are lying idle. Sales of 
lathes and milHng machines are 
also described as poor. 

The problems of toe Imjin 
area agricultural project, also 
supported by the ADB, have 
been different from those of toe 
Gunpo industrial plant, 
although they may be traced 
i baric to the same source— an 
overheating economy in ; 1979 
and 1980. For the Imjin project 
the consequences have been 
serious by Korean standards— 
it is being completed next year, 
more than three years late and 
at more than double the local 
currency cost 

The project is in as unusual 
location, near the demilitarised 
zone (DMZ) separating North 
and South Korea. Large con- 
crete structures, looking like 
uncompleted flyovers, straddle 
the Unification Highway which 
runs north of Seoul to the 
Imjin Fiver and through the 
project area. The structures 
are designed to be blown up to 
obstruct toe advance of- an 
invading force. 

It as toe biggest of toe three 
agricultural projects backed by 
toe ADB in South Korea, and 
involves the development of 
8,186 hectares, including consoli- 
dation of 4,500. A newly con- 





structed pump station on toe 
Imjin pushes water through 
-286 Ion of canals with the help 
of another II secondary pump- 
ing stations. Two drainage 
stations and a regulating reser- 
voir have also been built None 
of these facilities existed before 
1975. 

In its purpose -of improving 
water supply, drainage and agri- 
cultural methods, the project 
has already achieved results. 
Before 1975 rice yields were put. 
at 3.0S tonnes per hectare, and 
farmers' average incomes at 


South Korea 


around 1m won (£790) annually. 
Now yields axe said to be &25 
tonnes per hectare, -incomes 
3.7m won. Farmers pay for 
their water according to the 
grade and area of their land; 98 
per cent are arid .to pay on 
time. 

These results have not been 
secured painlessly. For the 
farmers an important of bene- 
ficial disruption has been to the 
land itself. In true modern 
Korean style toe old, irregular 
paddies have been ploughed up, 
levelled and demarcated afresh. 
Some farmers have even had to 
move house, albeit to be closer 
to their land. 


Apart from this consolidation 
tiie project has required con- 
version of 440 hectares of 
“ upland,” suitable fur dry crops 
like vegetables, to paddy for 
growing rice. Owners of these 
uplands have strongly resisted 
toe change because they can 
earn larger incomes from grow- 
ing vegetables or frtrft fur the 
nearby Seoul market Govern- 


ment officials say toe proximity 
to Seoul -makes this problem 
peculiar to the Imjin project - 
and acknowledge that it 4s vir- 
tually impossible to sttfro. - 

The biggest' problem tofth toe 
Imjin project, however* has 
been the escalating cost the' 
Government derided in 1980 to 
delay this and other a^dculfitEral 
projects in favour of industrial 
projects as pant of its policy xf 
public spending cats , designed 
to curb the country's rising 
inflation rate. 

In toe intervening period the 
1979 oil price rise and higher 
labour costs in Korea eorntoia&t - 
to force up the Imjin project’s 
costs. Originally estimated at 
22bn won, they are now pat at 
45bn. The ADB foreign cur- 
rency contribution, made out of 
the Bank's ordinary capital 
resources, has remained un- 
changed at 519m. .. 

The ADB’s loans -to South 
. Korea are thus regarded in 
Manila as a qualified success. 
The question which has -yet to 
be answered, however, is 
whether South . Korea should 
join Hong Kong and Singapore 
on the list of countries not’ 
borrowing from the ADB be- 
cause of reaching, a; certain 
stage of economic development 
Ministry erf Finance officials; 
pointing out that Sooth Korea 
is a large country With under- 
developed rural areas, insist 
that . its. hifrastructural aid 
agricultural projects will con- 
tinue to need lower cost money 
and insist toat, for the time 
bring at least, the Government 
will continue to borrow from 
the multilateral , lending agen- 
cies: 

• - 4 ----- - cs. 


Inn 


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NEW YORK - ATLANTA BOSTON 

CHICAGO CLEVELAND OALtAS • 

GENEVA LONDON LOS ANGELES . 
MELBOURNE MONTREAL PHILADELPHIA 
SAN FRANCISCO SAN JUAN ! TOKYO- 













Financial Times Wednesday April 21 1982 

ASIAN DEVELOPMENT BANK V 


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Part of the Philippines 3 Angat irrigation scheme 

Rice fields flourish 
under irrigation 


Philippines 


FIFTY KILOMETRES from the 
ADE’s impressive headquarters, 
the Baguio expressway north 
finally leaves sprawling me tra- 
il arula behind and plunges 
through a green expanse of lush 
rice fields. Their high-yielding, 
output is the result of the 
Angat irrigation project, whose 
expansion and improvement 
over the past few years has 
been supported with hard and 
soft loans from, the bank. 

The original Angat irrigation 
system was completed in the 
late 1920s, which makes it one 
of the oldest in the Philippines, 
and its evolution reflects the 
country’s transition to modem 
fanning. 

A dam diverted the Angat 
River into two main canals and 
a network of lateral canals dur- 
ing the December to April dry 
season, but the water distribu- 
tion was uneven and plenty was 
wasted. 

An appreciation of 'the im- 
portance of controlled water 
flow, together with the advent 
of high-yielding rice, seeds, fer- 
tilisers -and pesticides, high- 
lighted the scheme's real but un- 
exploited potential. 

The ADB backed a pilot study 
on water management in 1968 
and a feasibility study for an 
improved irrigation system in 
1973, before offering a $6m 
soft loan and $3.6m hard loan 
for what became the country’s 
first' Integrated rural develop- 
ment project 

Co-operation throughout has 
been with the Philippines 
national irrigation administra- 
tion, and developments in the 
Angat River have been 
paralleled by a similar project 
on the Magat River 35 Okilo- 
metres further north, which is 
also supported by- the ADB. 


The Angat project has in- 
volved construction of a pump 
station on the diversion dam to 
push water through hew canals 
into areas not previously 
reached, rehabilitation and ex- 
tension of the existing canal 
and the improvement of the 
farm ditch system of the area’s 
feeder roads, procurement of 
equipment and provision of con- 
sulting services. 

The principal aim was to in- 
crease the area under irriga- 
tion from 22,900 hectares in the 
wet season to around 27,000 
hectares, and from 24.800 
hectares in the dry season to 
around 30,000 hectares. The dry 
season figure is larger because 
part of the area is submerged 
and virtually tmcultivable in the 
wet season. 

With better water manage- 
ment and expert extension 
work, the hope was lhat out- 
put would be increased, raising 
fanners’ incomes and employ- 
ment in the area, and that -this 
would increase the country's 
rice export prospects, foreign 
exchange savin es and chances 
of crop diversification. 


Harvesting^ 


Martial, a small but tough 
peasant fanner in his 30s with 
seven children, is sure the pro- 
ject has helped him. He is one 
of 21,152 fanners .operating 
20,800 farm lots in the Angat 
area. Although be was harvest- 
ing two crops a year ' as early 
as 1958, he says he has seen 
his output grow with the tech- 
nical advice he has received. 
But he still grows only rice, 
saying he cannot raise the capi- 
tal to grow other crops. 

Martial is also a member of 
a compact farmers’ association, 
an ingenious institutional crea- 
tion designed to make the 
whole project self-managing. A 
total of 1,040 is envisaged, with 
average . membership of about 


20 fanners cultivating 30-50 
hectares of adjoining land 
sharing a common farm ditch. 
The associations are expected 
to plan their planting, harvest- 
ing and marketing together 
and, crucially, to collect their 
own irrigation fees. 

To encourage the working of 
the system, individual farmers 
receive a discount for paying 
their water fees on time, and 
farmers' associations are given 
a 2J to 3 per cent bonus for 
collecting 100 per cent of the 
fees due. 

The farmers are also paid a 
fixed amount per square metre 
for administering the area 
under their control, which may 
be reinvested in fertiliser or 
equipment. 

Groups of these associations 
will eventually be linked into 
irrigators’ associations which 
.will handle the repair and main- 
tenance of canals and the distri- 
bution of water for themselves. 
Two pilot associations are 
already said to be functioning 
bat further development seems 
a long way off. 

Leonardo Gonzales, superin- 
tendent of the project, acknow- 
ledges the need to motivate 
farmers bat talks enthusiastic- 
ally of the progress made so 
far. To judge by farmers 
incomes, put at 6,000 pesos 
($750) a year and by the bustl- 
ing town of Baliuag, the area 
is relatively well off by national 
standards. 

Some fanners are said to 
fc$ve Improved their living 
standards so much they have 
remodelled their homes, bought 
a jeep and own a television set 

But plans have not proceeded 
as far as the government agen- 
cies pushing them would have 
liked partly because of farmer 
resistance, but also because the 
agencies themselves have had 
problems of co-ordination and 
Implementation. 

cs, 


Indonesia 


Broader 
use of 
loans 


THE ADE’s operations in 
Indonesia have reflected the 
changing balance of succes- 
sive national development 
plans, with the emphasis on 
agriculture and the rural 
sector a decade ago bat more 
recently on agro-related 
industries, health and educa- 
tion. 

Agriculture has received 
the biggest share of credits 
— $56 1.35m or 35.7 per cent 
of total ADB lending in 
Indonesia. Electric power has 
been another big recipient, 
with $412 ,3m (26.3 per cent). 
The other beneficiaries are 
transport a nd co mmuni n rw 
($ll£L5m or 7.4 per cent), 
industry ($73. 7m or 4.7 per 
cent), water supply ($87m or ’ 
5.5 per cent), urban develop- 
ment (872.75m or 4.7 per 
cent) and development banks 
($30m or 15 per cent). 

More than half of the bank’s 
projects are spread over all 
the major islands of 
Indonesia, although Java with 
almost 62 per cent of the 
population gets the lion’s 
share. 

In agriculture the focus has 
been on irrigation and area 
development, smallholder 
development, fisheries and 
livestock, improvements In 
water management and flood 

control. 

In education, bank credits 
have focused on development 
of manpower resources, 
while in the communications 
seetor the emphasis has been 
on roads to serve the rural 
population. A new govern- 
ment programme of rural 
electrification is also being 
supported, with projects for 
hydropower generation, trans- 
mission and distribution. 

Disbursements in Indonesia 
are lagging seriously behind 
the granting of credit, how- 
ever. At the end of January 
1982 they amounted to only 
8338.1m, or about a quarter 
of total effective ADB loans to 
Indonesia The lag has 
become more pronounced in 
the past four years, during 
which bank lending has in- 
creased considerably. 

But the growing discrep- 
ancy between commitments 
and disbursements has also 
caused the government to * 
simplify procedures for 
releasing funds and opening 
letters of credit; monitoring 
procedures have also been 
improved. As a result, dis- 
bursements In 1981 increased 
by 56 per cent over 1980, 
going up from 850.08m to 
$90.55m. 

The biggest ADB credit for 
Indonesia so far is for a 
multipurpose dam at Wada- 
slintang in central Java, 
which will help irrigate some 
30,000 hectares and generate 
16 MW of electricity. The 
irrigation will help 89,000 
farmers raise their output of 
rice and soybean, thus 
increasing their yearly per 
capita income from TJJL$182 
to $520. 

5ANJOTO 


Jungle converted to farmland 
and commercial forests 


Malaysia 


FOR A middle-sized country 
like Malay sia the dimensions of 
the Pahang Tenggara project 
are staggering. It covers nearly 
a third of Pahang State and 
nearly all the land south of the 
Pahang River between Temer- 
loh and Pekan to the Johore 
border. 

The area encompasses 2.5m 
acres of jungle, of winch 
Malaysian planners will turn 
900,000 acres into farmland, an 
equal acreage into forest yield- 
ing valuable timber and the rest 
into a national park, housing 
and recreation areas. 

It embodies the vision of the 
late Prime Minister Tun Kazak 
(1970-76), the architect of 
Malaysia’s successful govern- 
ment-sponsored land develop- 
ment schemes, of giving land 
and a future to farmers without 
either. 

Tun Razak was a Pahang man. 
He dreamt of a thriving com- 
munity of half-a-million people 
housed in modern townships 
and producing large volumes of 
p alm oil, rubber and cocoa. The 
■Pahang Tenggara (literally 
south-east Pahang) is to be 
an economic dynamo, a force 
to be reckoned with in Malay- 
sian politics. 

, A T" ac *» r plan for the region 
was drawn up by a consortium 
of Canadian consultants in 
1972. A vital feature was the 
creation off 36 towns in the 
Tenggara, each serving land 
schemes within a radius of five 
to seven miles so that settlers 
would live in these town and 
take only half-an-hour to reach 
their place of work. In this way 
the Government was to achieve 
two important aims — opening 
up the . jungle and .urb anis i ng - 
the Malays. - . 

The Asian Development Bank 


made two loans, in 1974 and 
1077, totalling $36m, for staff 
training, road and housing con- 
struction, water supply and 
management services. 

So much for the plan and the 
dream. What are the facts? 

Over the past 10 years more 
than 15m ringgits have been 
pumped into opening up the 
Tenggara. About 400,000 acres 


later, instead of the original 
target year TO 1990, before the 
region is developed. But the 
jungle is steadily being pushed 
back by tractors and crops. 

Developing such a large 
isolated region poses very great 
difficulties. The costs of felling 
the jungle, building roads and 
houses are much higher than in 
other land schemes. 



have been put under cultivation, 
overwhelmingly with oil palm, 
with about 17 per cent for 
rubber, cashew nuts, cocoa and. 
other crops. 

Another 4bn to 5bn ringgits 
(taking into account Inflation) 
will have to be invested before 
the remaining half-a-million 
acres are developed and the 
population target reached. 

There are now 150,000 people 
living in 18 townships compared 
with the original 60,000 subsist- 
ence farmers and aborigines. 

DARA. the authority given 
overall charge of Pahang Teog- 
gura, admits that progress has 
been slower than planned. It 
wifi take until the year 2000 or 


Pahang 

Tenggara 

Project 


Take, for example, water. 
Pahang Tenggara is a compara- 
tively dry part of Malaysia.- 
Underground water sources are 
few.. Finding water for halff-a- 
million people .and irrigating 
nearly lm acres of crops is not 
easy. The problem is aggra- 
vated by jungle clearing, which 
upsets the water retention 
patterns. 

For the new settlers life is 
raw, harsh and lonely. It Is 
much ' tougher than in the 
Jengka triangle, a 200,000-acre 
project in central Pahang de- 
veloped in the 1960s and 1970s. 

Piped water is a luxury in 
Tenggara.'- The only entertain- 
ment is television, apart from 


the occasional talent contest and 
sports tournaments organised 
between the townships; 

It was only in August last 
that a regular has service was 
introduced between Muadzam 
Shah, the biggest Tenggara 
town with 15,000 inhabitants, 
and Kuan tan, the only link to 
the northern states from where 
most of the settlers originate. 

Like many Government-man- 
aged projects the Tenggara 
scheme has had its share of 
wastage, inefficient' management 
and corruption. A tapioca pro- 
ject, at Bukit Ibam a fiasco, 
resulting in the loss of millions 
of ringgits. 

Implementation of the plan 
for a renewable forest area, 
supporting a thriving timber- 
based industry, is nowhere in 
sight Politicians and influen- 
tial elements in the state 
grabbed concessions and strip- 
ped the forests without bother- 
ing to replant 

There is no worthwhile 
manufacturing to speak of in 
Tenggara simply because . pri- 
vate investors have better 
places to go. 

There is still a long way to 
go before Pahang Tenggara 
matches the dreams of Tun 
Razak. 

Given another five years, how- 
ever, large parts of the pro- 
ject's land schemes should reach 
peak production and the region 
will be a substantial producer 
of palm oil and rubber. By then 
its earning power diould be 
attracting the range of inves- 
tors and businessmen able to 
inject vitality into townships 
anfi provide the range of ser- 
vices' necessary for urban com- 
forts. 

It is partly in anticipation of 
the high volume of' oil palm 
from the Tenggara that the 
Government has spent 500m 
ringgits building two ports at 
Pasir Gudang and Kuan tan. 

WONG SULONG 


■ [• ■ " t ". j A - .* 




v; ^ *■)■>,>> ■ >. , • ; " • . ... . ■ ... . ■ : 





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■-■■'VI 


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Financial Times Wednesday April 21 1982 


ASIAN DEVELOPMENT BANK VI 


Ordinary Lean Approvals by Sector 


1 1967-1981 | 

Specialfumts Loan Approvals by Sector Technical Assistance Approvals by Sector 





Agricstan&AvB-lBkBirT 


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1 8. Pnjmbnion 


ji'fr'y* *'| DtMbpant Bnks 


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How do you deal with cargo 

ssthatisasolidoDed^ 

next, 

Mrrw tfiflaa fnole in n cafo ttffi/'iant' A J 




ns that is a solid one day 

oil from another. And more and more ^ ^ 4 4- 

often, liquid propane gas as well,'. . 1 4 /W 444 jJ 

You deaL with it by building Jk I If II | if I 
ships; Special carriers designed to a Awl 

carry these energy fuels in a safe, efficient JL 4 

itlf anil sometimes a gas? 

as energy needs change and newer energy sources are discovered. 

At present Japan derives about 70 percent of its energy requirements from petroleum. 
Other nations tpo rely, too heavily- on petroleum. And .. rang^-- 
that’s not good. We’re recommending that reliance of BJj 

petroleum be cut back by using alternative fuels. That’s gif 

"why we are operating coal carriers, LPG and crude oil IfJflESm,' -B& 
carriers — and planning newer fuel carriers. . jfejHftPggk. .jE^j 

We know this is not the complete answer to the j 

energy problem, but it’s part of it. It may be part of 






msm 


NBa 


Charting a course 
to toflwrrowas wdl as today. 



NIPPON YUSEN KAISHA 


J a Hud OHoc Tokyo. Japan ■ London Branch Office: P & 0 Bldg, aft Floor, 122-138 LeadonhaB SL London E.C. 3V 4PB, England, U.K. Tel: (01) 2B3-2J99 
Other Overseas Offices In Europe: ■ Paris: TeL 285-1900 ■MEare Tel: 803346 ■ DusuMorf:Tel:B4151 ■ Hamburg Tel: 35 93-1 


TJusamotmcemati: appears as a rnatter qf record onfy 


"X 


Asian Development Bank 

Dfls. 100,000,000 

11% per cent. Bonds 1982 dne 1988/1992 


Anneal coupons Maidi 15 


New ways arc being sought to stunulate the flow of external funcis 

Co-financing seen as growing 
arm of aid strategy 


THE NEED for Asian countries 
to find new ways of genera tins 
external finance is highlighted 
by the ADB’s calculation that 
external resource requirements 
for developing member coun- 
tries wUl grow to §63tra in 
1990 from the $27bn level of 
1980. 

The fact that the Bank is com- 
ing under pressure to reassess 
- its underlying aid strategy and 
that it is faced with its present 
funding problems simply em- 
phasises this need, even though 
the Bank is expected to supply 
little more than 3} to 4 per cent 
of the total external resource 
inflow into the region during 
this period. 

The biggest hopes for stimu- 
lating the flow of external 
finance are being pinned on the 
idea of project co-financing 
between the ADB and private 
sector commercial banks and on 
the prospect of equity participa- 
tion by the Bank in develop- 
ment projects. Neither opera- 
tion, however, is regarded by 
the Bank as an “answer” to 
development problems. Each is 
seen as just another tool to be 
deployed whose real efficacy has 
yet to be demonstrated. 

The Bank has gained some 
valuable experience of co-financ- 
ing already — but principally 
with' official agencies. By the 
end of 1981 112 projects bad 
received loans on a co-financing 
basis to the tune of $2.55bn. Of 
this sum, |L2bn came from bi- 
lateral sources, $lbn from 
multilateral sources and $350m 
from export credit and commer- 
cial sources. In 1981 alone 23 
ADB-banked projects involved 
co-financing, with outsiders con-' 
tributing 3627m and the ADB 
$827m. 

Problems 

The ADB’s largest co- 
financed project so far has 
been a major fertiliser 
project in Bangladesh, which is 
designed to make the country 
self-sufficient in urea. This in- 
volved working with the World 
Bank and with Japanese and 
Arab official sources of finance, 
with consequent severe prob- 
lems of co-ordination. Various 
countries wanted to fly their 
flag s on different parts of the' 
project and at one point the 
Arkb -countries wanted to in- 
voke the Arab boycott clause, 
which was inconsistent with the 
ADB’s competitive bidding 

policy. - 

Delays as a result of such 
problems - are expected to en- 
gulf. ADB efforts to involve 
commercial banks too but the 
bank believes it must try to in- 
volve the private sector in prac- 
tically every sizeable project it 
considers. The Bank’s experi- 
ence of private sector .commenc- 
ing is limited but instances in- 
dude a $5m loon in 1973 by 
Bank of America for an ADB- 
sup ported water supply project 
in Singapore and projects in 
the Philippines and Fiji involv- 
ing the California First Bank 
and the Tokai Bank of Japan. ' 

Lack of involvement hither- 
to by commercial banks is more 
a reflection of the way they 
make their assessments on a 
country risk basis rather than 
rates of return, which on most 
ADB-bocked projects are 
usually over 10 per cent in 
real terms. Commercial banks 
therefore put the emphasis on a 
government's capacity to repay 
on time and in hard currency. 
Development banks deploy 
technical staff to assess in de- 
tail the particular project to 


Loan Approvals 

fey sector 

Thres^^nK3^aueraSQs,'06Q J 7D J 79-®t 


I Agric ul t u re and 
Mgro-ta Juetry 






Dcrotopment 


> 


twtaaftysoa 

Mineral 


1969 *70 *71 12 TO 74 75 76 77 78 *79 *80 - - I 

s («M- 70 «rara») - (WMtawwn? , . : J 

The bulfe of ADB lending goes mderstandably into agriculture and related pro fleets 
like irrigation. Next comes energy and here — as the article on theopposite page • 
explains — the aim is to redace the present heavy emphasis on potter generation 


be 

The hope now is that an ADB 
stamp of approval will bring 
tiie hanks in, either leading 
longer term than they other- 
wise might or perhaps taking 
up shorter maturity loans 
created by splitting up the fin- 
ancing of a project into longer 
and short-term maturities. An- 
other though vaguer suggestion 
is that project loans should 
simply be syndicated among 
commercial banks. 

One of the strongest pro- 
posals before the ADB board, 
which is due to consider the 
co-financing question at a meet- 
ing in Hay, is a complementary 
scheme involving parallel loops 
which the ADB would make in 
two tranches to borrowing 
government. One would be on 
the ADB’s terms, the other -on 
commercial terms and carrying 
special clauses - saying' that 
failure to pay would' amount to 
default against the ADB. These 
would be sold on to commercial 
banks. 


Marriage 


Plainly, commercial co-financ- 
ing would be like arranging 
a marriage. Prospective 
partners will want to know the 
terms and conditions in ad- 
vance; preferences of borrowers 
and lenders will have to be 
matched as far as possible by 
comparison. The ADB’s goal of 
equity participation is probably 
even more distant however — 
although firm ideas are emerg- 
ing based partly on the experi- 
ence of the International 
Finance Corporation (IFC), the 
venture capital arm of the 
World Bank. 

Three possibilities are being 
mooted in this field: 

• Direct equity investment, 
in which the ADB decides to 
participate directly in a develop- 
ing member country’s venture 
which the Bank has fully ap- 
praised. Each investment would 
be approved by tire Bank’s 
board; 

• Participation in the equity 
of a country’s private sector 
financial institutions in order to 
broaden their equity base and 
so heighten their loan-offering 
capacity; 

• Provision of lines of equity 
to national development banks 
to be used on the ADB’s behalf 
in small or medinm-rized pri- 
vate sector ventures. 

There is obviously a risk for : 
an institution like the ADB in 
delegating authority in this 
fashion to make money available 
to the small entrepreneur. Says 
one Bank official: “The IFC 
thinks we’re crazy." But the 
notion of equity financing also 


has some high level support.” 
For example, Mr Cesar Virata, 
the Philippines Minister of 
Finance and an ADB governor, 
said at the 1980 governors’ 
meeting that he wanted to see 
the Bank extend its risk in this 
way and to become a “develop 
ment institution” as well as a 
lending institution. 

The idea interests the UB. 
because of its private sector 
thinking but the Americans be- 
lieve that clearer guidelines are 
still needed. The Bank’s char- 
ter certainly allows equity fin- 
ancing but a formal move has 
to be sanctioned by the Board 
of governors, which so far has* 
only considered the ■ idea 
informally. 

Apart from these moves by 
tile ADB towards co-financing 
and equity investment, two 
other notable trends are visible 
in . the bank’s overall lending 

policy. 

• Programme and sectoral lend- 
ing. Until the late 1970s prac- 
tically all Che ADB’s lending 
was for specific projects. & 
1978 it was derided, to intro- 
duce programme lending and In 
1980 sector lending as new 
vehicles for transferring re- 
sources to developing member 
countries. 

Programme lending is de- 
agned to help developing coun- 
tries increase production where 
there is underutilisation of 
existing capacity. Nine pro- 
gramme. loans worth a total of 
$87fim had been approved by 
the end of 198L Three approved 
last year, for example, werefor 
crop intensification programmes 
in Bangladerii ($18m), Burma 
($5m) and Nepal (84m); 

Sector loans are designed to 
meet capital requirements and 
-strengthen institutions in parti- 
cular sectors. They are for 
larger amounts and are quicker 
in disbursement than pro- 
gramme loans. By the end of 


-last year the bank had approved 
seven sector loans amounting 
to almost 6350m. Two last year 
from ordinary- capital resource* 
covered water supply ($4za) art 
rural electrification ($S7.5o) 
in the Philippines; one from 
the soft loan, window covered 
small-scale irrigation in Bangla- 
desh ($50m). . 


Groups 


• Grading of - borrowing coun- 
tries. The bank’s categorisation 
of borrowing countries is under- 
going a change; Taking per 
capita GNP levels it classifies 
countries into three' groups 
low-income (Groom A— Afghani- 
stan, Pakistan, India, Nepal 
Bangladesh, Sri Lanka and 
Burma); middle-income (Group 
B — Malaysia, Indonesia, -Thai 
land, the Philippines and Papua 
New Goiqea) and high-i n co m s 
(Group G— Hong Kong, Singa- 
pore, South Korea and Taiwan). 

Group A countries have hith- 
erto had full access to the re- 
sources of the Asian Develop 
ment Fund, the Bank’s soft loan 
window. Bat Pakistan, for ex- 
ample, is being provided with 
some harder loans because soft 
loan resources are limited; This 
process is called " maturing.” ' 

Similarly Indonesia, which u 
a Group B country is supposed 
to have some access to mode# 
amounts of ADF funds, has had 
to forego this option since 1980. 
This year Thailand and .the 
Philippines are having to do 
the same. 

As for Hong Kong and Singa- 
pore, which ought to. have an 
access to ordinary capital re- 
sources, the Bank, is; embark- 
ing on no new operations there. 
These countries are described 
by ADB officials as. having 
** graduated,” - - although the? 
have not been deprived of their . 
right to borrow. 

, ' • t'--: GS. 


FACTS ABOUT ADB 

Opened for business: December 39 39W 

Address: 2330 Rozas Boulevard, Metro Manila, Hdteppnies, 
or PO Box 789 Hernia. . ' . -’i ; ,-‘ 

Tel: Manila 831 7211 Telex 63587 ADB TTf 

Cable: Asianbank Manila 
Total member countries: 44 
. of which: 27 developing 17 developed 
30 regional 14 non-regional • 

Total staff: 1257 drawn from 33 nationalities 

(4® professional, 789 supporting) • 

Projects financed: 509 Countries «aSstedi.‘25 

Total loans approved 99,771m. . . r ; ■ - 


i K* ' 


a 


AJgeme^BaakNedaSaMN.'Vl 


Amsterdamr!RDtteidaniBai±N.V. 


Bank Mees-& Hope NV 

Cooperatieve Centrale RaifieiseiirBoereDleeribankB^. 

Nederiandsche Mddeastandsbank N.V. . /_ 

Pzejsan,Heldii^ - 

Credit Snisse East Boston limited 

DaiwaEmopeN-Y. ■. . 

Deutsto Bai± Akfaengesellsdiaic 

Kuwait Investment Company (SAIL) 

Kredietbank S A Laxembouigeoise 

Nomuia International limited • 

Swiss Bank Corporation International limited 

UmonBaok of Switzerland (Securities) limited 

- - 


VEREINS- UND WESTBANK 
Your direct link to all international 
financial transactions. 1 


Head Office: Hamburg, Germany 
Alter Wall 20-32, D -2000 Hamburg 11, Phone: (040) 3692-1, 
Telex: 0216379? ~ 


Euromarket subsidiary: Luxembourg . . v. 

VEREINS- UND WESTBANK INTERNATIONALE SA Luxembourg 
25, Boulevard Royal, Phone: 41401, Telex: 2668 vwbifx . 

Representative Office New York: 

Seagram Building,' r ‘ ‘ . 

375 Park Avenue, New Yak, N.Y. 10022, 

• * Phone: (212) 838-9292, Telex; 126 941 .... .-..--7 










Financial Times Wednesday April 21 19S2 


^ * P'li p 
-ai fy 


ASIAN DEVELOPMENT BANK VH 


S. K. Shanna reports from New Delhi on his country’s intent to borrow 

India’s decision no threat 
to other borrowers 




/ i 




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■ tSaisa 


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.-"-INDIA’S ANNOUNCEMENT- entitled to tap the bank's 
: that for file first time since resources, despite discordant 
; .. foundation of the ADB it will noises from Japan. It probably 

- .‘borrow from the institution had little choice, especially as 
* -from 1983- onwards, has sent Lidia has met the - argument 
•; ripples of anxiety through the that the ADB does not have 

bank’s traditional beneficiaries, the administrative capabilities 
But offi cials in New D elhi are to handle loan requests from a 
: unapoiogetic about the decision, country of the yfr-e of India 
, India’s need for external India has said it .will seek 
T funds has soared as its c urren t what it calls “ sector lending ” 
account deficit has grown to an rather than project loans and ' 
annual level of $4bn. and as the that this will be for the 
f World Bazik, anrid a deteriorat- country’s term-lending instrtu- 
• ing international aid climate, tions like the Industrial 
' has scaled back its concessional Development Bank of India 
l lending. (2DBI). These already have 

; Ti tian officials point out that faciliti es for careful scrutiny of 
« the previous decision to refrain projects, so the ADB will not 

- from taking any ADB assist- have to formulate documentor 

’ . ance, despite being its largest tion for itself on projects and 

- regional contributor after additional administrative mach- 

— Japan, was not meant to tie the hieiy wlH be unnecessary. No 
; country down for all ' bank, of course, even a develop- 

1 They also say that India’s “ eJDt bank, will sanction assis- 

- borrowings will not affect the ^athont routine pre- 

- most needy countries or people * stupes. But to the 

: because India, at least- for the “t*"* ..fat financial institu- 
: present, will not seek any £»« ***. are going 

: assistance from the ADB’s soft- j® . mucb . th« 

loan window, the Asian Deve- business. their work should at 
; lopment Fund, TmHa will there- * eas h . ntummse the extra 

“_fore not tread on the toes of administrative burden on the 

such low per capita income A "®- _ ^ , 

countries as Bangladesh, Sri figure has yet been 

‘ Lanka and the Philippines — worked out for the amounts 
■ • even though its own per capita 
".income- and size entitle it to 

" soft loans from the ADB. . 0 

Although this policy could I j n 

- change in time Indian officials J T | || /I V I 

go further and say that, even ‘Will L/lltlUJ 

.V by confining its borrowings to 
the ADB’s ordinary capital 
resources — -where it will com- 

■.V pete with such relatively (- 

developed and high per capita 1311 1 

- - -income countries as South . ' ^ 

Korea and Taiwan— its partici- 
...... pation is unlikely to hann other 

countries. • • 

This argument is based on THE ENERGY sector Is rising 
the ADB’s hopes of increasing as the new star in the Asian 
its ordinary resources by more Development Bank’s lending 
. than 20 per cent Officials say activities. The Bank wants to 
. it is largely from this increase', increase its energy lending 

countries might have more if years Versify its portfolio 
India did not borrow from the -of energy loans. It also sees 
• institution, in' - volume terms energy as the major incentive 
' ’‘■other countries’ borrowings f° r Private financial institutions 
” should not falL to joui its re-vitalised cofinano- 


India will seek from the ADB. 
Considering the country's 
needs for external financing 
they will certainly not be 
nominal! Ideally, In d i a would 
Want something like $400m 
- (£222m) a year or about $2bn 
over the next five years, but 
the amount Is negotiable in the 
light of India's willingness to 
take into account the needs of 
the ADB’s traditional bene- 
ficiaries. The amount would 
also depend on whether the 
ADB is able satisfactorily to 
augment its ordinary -capital 
resources from the world 
capital markets. 

Interest 

Until its government’s deci- 
sion to borrow from the ADB 
India’s main interest in the 
bank lay in taking part in as 
many projects as possible fin- 
anced by it in other Asian coun- 
tries. In the early years this 
was inconsequential because 
Indian companies could not 
compete with Japanese and 
Western bidders. 

But Ihe capabilities and com- 
petitiveness of Indian com- 
panies has improved in recent 
years and India’s share of ADB 
procurement has increased sub- 


stantially- since 1977. From a 1 
total of about 52Sm up to the 
end of 1976, India's share had 
risen to about $112m by the 
end of late October. 

When ADB loans to India 
are approved from 1983 onwards 
this share is certain to increase, 
giving the country a double 
advantage from Its links with 
the bank. 

India will also help In the 
ADB’s attempts to increase its 
capital resources for tile third 
time. It did so when the second 
replenishment was made in 
1977, contributing $5. 1.6m in 
foreign exchange to the ADB’s 
capital stock by March, 198L 
The bulk of India’s subscrip- 
tion to the ADB’s capital stock 
is in rupees, however, and this 
is used for its administrative 
expenditure in the country. 

The amount is not insignifi- 
cant India has a 7 per cent 
share of the capital, the third 
largest after Japan and the U.S., 
and' this entitles India to one 
position of executive director 
on the board of directors and 
one of the two vice-presidents. 
Now that India is to become a 
borrower as well as a contri- 
butor their role will become cor- 
respondingly more Important. 


Emphasis on diversifying 
energy lending 

THE ENERGY sector Is rising focus more sharply on its lend- gramme lending, funding needs 


considerably in the next five 
years and diversify its portfolio 
of energy loam. It also sees 
energy as the major incentive 


ing strategy in order to increase will be greater, while the tech- 
the mileage of its energy loans, nical requirements are entirely 
at least from the point of view different from what the bank 
of development fin a nc i ng . Its specialists are familiar* with. 

composition of loans is such ! 

that it is heavily angled towards “J2, ! 

commercial power generation P° wer generation sub- j 


borrowings for private financial mstttottaK ' 


projects 


The ADB Itself, has agreed ^ schane * 

' principle ■ that India is . The Bank' 


ior private rni a n ciai msmuaoas nrn fltnhle and for which 

to join its re-vitalised cofinanc- 19^1080 93 pm- cent of the 


The -Bank needs, however, to 


bank’s total -cumulative energy commercial funds are available 
lending of. $L5hn went -to dec- “yway. The second option puts 
tricity generation, mainly from the bank m a position that 
indigenous energy sources. The contradicts its role as a pro- 
tiny balance of 7 per cent was -rider of funds and inputs that | 
equally divided between coal the private sector will not or 


To Future Generations, 
Security 


and gas development. 

ADB has a strong desire to 


caimot provide. 

Nevertheless, ADB is target- 


play down its emphasis on ting a total of $6bn in energy 
power generation and to spend insm^ for the period 1981 to 
more on the development of 1987. The amount means an 
commercial energy resources annual budget of 8857m or 
such as oil, coal and natural gas almost double the average 
and to start looking more yearly energy loans during the 
closely at nan-conventional last three years, 
sources. But some Bank officials t . . . , 

say that because of certain . *** Ba ? k “tends to reduce 


mm 


Stonehenge 

OnEn^mfa -V— : , 7 

Salisbury Phnn sinnd 

lheie gigantic prcWa-wic 

remains rf Manis early *■■*?£* ; 

aCoiipls to understand Ms yjJB 


constraints, mainly faanriai in its allocation for the electricity 
nature, the Bank will still be subsector from the curren t 93 
heavily into power generation P® 1 _cent- of the total energy 
and distribution over the nest landing to abont 76 per cent 
five years. between 1981 and 1987. Conse- 

_ . . A . quently, it is hoped that lending 

for the development of oil, gas, 
S f n oU «S5. coal and non-couventional 

energy will rise from the cur- 
W ~ rent 7 per cent to 20 per cent 
5S JSf These targets may, however, be 
optimistic considering the con- 
ling price of oil. Substantial i_a. *■„, i.__ 

portions of the profits of devel- f long 

opment were siphoned off by the gestation projects. 

.swelling oil. import bills. ADB 
and other multilateral banks Possibilities 

watched helplessly as some of . . . . .. ^ 

their development efforts were Given tne constraints on the 
dissi pated. Bank’s traditional lending tools 








their development efforts were Given the constraints on the 
dissi pated. Bank’s traditional lending tools 

__ ... — the ordinary and soft loan 

The energy sector’s share of windows — it will be i «ing 
ADB’s lending pie has i nc reased more co-financing to promote 
' qui ^ e . from !8 per energy projects. Attracting: 
cent to I976to 29 per cent last private commercial banks to ce- 
year.^In 198 1 agriculture and finance energy proposals win 
agro-mausuy continued to re- not be difficult since many of 
ceive the largest share of lend- these have vast commercial 
ing, accounting for 3Z.3 per possibilities. In fact the Bank’s 
cent The social mfrastructure new President Mr Masao 
sMtor received 144> per cent Fujioka, sees the energy sector 
while loans to development ^ “ the main pillar of its 


Social welfare is a subject of Serious consid- - 
eration in most modem societies. Man in the 
twentieth century accepts his responsibility to 
bequeath to the next generation a society ■ 
better than-his own. Daiwa Bank is not unique 
in accepting this responsibility, but Daiwa is 
unique in making acceptance of this role in 
society an integral part of their banking service. 

Daiwa is the only Japanese city bank to 
combine banking and trust business. Daiwa is 
thus a fully integrated banking institution, 
comprising banking, international financing, 
trust, pension trust, and real estate business. 
This integration is part of our effort to fulfil our 
social responsibility consistent with society’s . 

needs in a contemporary environment 


banks rose to 12J2 per cent 
The bank has spent some 


co-financing activities.” ' The: 
reason why the -Bank did not ! 


$500,000 on an intensive reg- make much progress in attract- 
ions! energy surrey winch cov- ing the private sector in co- 


ered most of its DMCs. If 
anything, the survey &ows that 
international financial agencies, 
ADB included, have over-em- 
phasised the generation and 
distribution of electricity. It 
also shows- the massive invest- 
ments required by the DMCs 
in meeting their energy needs. 
According to the survey the 
DMCs will need about $llhn in 
annual investments over the 
next five years, rising to giSJSbn 
annually from 1985 to 1990. 

But more important for ADB, 


financing ventures is that is has 
placed its top priority in agri- 
culture, in which private banks 
have very little interest, says 
Mr Fujioka. 

Mr Robert Bakley, director 
of ADB’s industry and develop- 
ment banks department, said 
that on top of its planned lend- 
ing of $6bo the bank expects to 
raise a corresponding $6bn in 
co-financing from private banks. 
Mr Philip - Lewis, a senior 
energy specialist at the Bank, 
admits: “There will be no great 


Over 
10 billion 
dollars™ 

bought and sold every trading day in the bond and money markets. 

One of the leaders in Mergers and Acquisitions, with over 100 trans- 
actions completed in 1980 and 1981. More than 100 years of experi- 
ence in the major markets. 

Those are just three measures of our strength in the US indus- 
trial and capital markets. 

That strength is ready to work for you on the international 
scene, too. In New York, in London and in Tokyo our specialists are 
available to serve you, all of them committed to excellence in a 
wide range of international services, including: 

Mergers and Acquisitions 
Yankee Bonds 

Eurocurrency Bond Markets 
Money Market Securities 
Equipment Finance 
Real Estate 

• I 

Government and Corporate Advisory Services 

Lehman Brothers 
KuhnLoeb 

Incorporated 

Tokyo 

^ f r , PO Box 127 

New York London Kasumigaseki Building 

55 Water Street 99 Bishopsgate Suite 2618, 3-2-5K 

New York, N.Y. 10041, USA London EC2M, 3XD, England Chiyoda-KU, Tokyo 100, Japan 


This announcement appears as a matter record only. 


New Issue 


March 4, 1982 



¥20,000,000,000 

ASIAN DEVELOPMENT BANK 

8.2% Japanese Yen Bonds 
Eighth Series 

Due March 4, 1994 


The Nomura Securities Co., Ltd. 

Daiwa Securities Co. Ltd. The Nikko Securities Co., Ltd. Yamaichi Securities Company, 

limited 


The Nippon Kangyo Kakumaru Securities Co., Ltd. 


Sanyo Securities Co., Ltd. 


Wako Securities Co. s LtcL 


New Japan Securities Co., Ltd. 
Kokusai Securities Co., Ltd. 


Si 1 Merrill Lynch Securities Company, Okasan Securities Co., Ltd. Osakaya Securities Co., Ltd. 

next five years, rising totlSfibn S Philip Lewte, a sSS To fro Brandt 

amwaHy fiom 1985 to 1990. energy spedaiist at the Bank, Yamatane Securities Co- Ltd. Dai-ichi Securities Co.. Ltd. Tokyo Securities Co, Ltd. 

But more important for ADB, admits : “There will be no great 

gives Tclueas tcnSere -SSney at^ leSt Bache Halsey Start Shields (Japan) Ltd, Smith Barney, Harris Upham International Incorporated, 


is most needed. Given the cur- future. 


rent difficulties, in its own fin- 
ancial requirements, however. 


B-V * 1 ' j 

r^“ 

fts y 


There is a minority group In 
the Bank who are not convinced 


the Bank win be hindered from ^ ADB should spend “so 
moving quickly into these areas, mnch o a gr py on the enenrv sec- ' 

2“ w 19 ? 5 projects are more potentially 

? profitable than those in agricul- 
the energy .sector . wfll be sub- health and education, 

ject to the awdlaMityof re- Eoergy ^ therefore naSralty 

saa ^ s ™ attractive to profit-orientated 

anaal and eamomic viabfflty institutions.- 
Of Specific projects. The lmpll- w 

catlonia that althoogfa ADB 5 10 ? 

has a panoramic Hew of the J s «K" t ?h fc Bailk i 

general direction of its energy ShO }M at , le^t “seOl the pro- 
polides, It is restrained from jects— and of course the co-| 

financing idea — to private ban- > 


Tokyo Branch 

Koyanagi Securities Co., Ltd. ■ Marusau Securities Co., Ltd. 


Tokyo Branch 

Toyo Securities Co., Ltd. 


a fully Integrated banking service 



' - Lw^Brirndtew!i^^ffH«i5e.T7Lon«toiW , flj^^ECTinBO_ 
FtinMgrtBnmcIc Eadicraheinier La m fatiicae Hi t»WW trwkhirtmJiWn 1. 




i. -* BOT 1 - 3 , DBSBuBdmi. S SH^on W» 

»•: ... Hongt^m^ti;lt»m57M'705AWDd«HVWtBo^]9, I >» v D«uRo*S. 

• II, Central. Hong Kenq . • ’ " 

!• ‘ ‘ Agencies: New Yarkand Las Arijdes . _ . . 

. Representative Offkesi &)^inQ, Sao Pwb.Honstan, Pon^PanwiMi Balualn. 

'"f. MeUcoend Va,tcoiivrr 

‘r - "• Subsidiaries: EtokTnnl Company, New Yotk.Dewa Bank . 

~ jdKat^Qplsm &reneM Fhanee UmttttC Hnnfl Kang 

' ' ■ - ' ■ . > ' . * . ‘ — •' 


But the thinking of most: 
other officials is that the Bank i 


uncertain as to bow much stress 


finance idea-to private ban- 
hers who are mostly conserva- 
tive “d are stm cautious about 
icortain as to bow much stress ^ mmi ttlng funds to the energy 


The Chiyoda Securities Co., Ltd. Hinode Securities Co., Ltd. Ichiyoshi Securities Co^ Ltd. 
The Kaisei Securities Co^ Ltd. Kosei Securities Co., Ltd. Maruman Securities Co, Ltd. 

Meiko Securities Co., Ltd. Mito Securities Co^ Ltd. Naigai Securities Co., Ltd. 

The National Tabayashi Securities Co., Ltd. Nichiei Securities Co, Ltd. 

The Toko Securities Co., LtcL' . Towa Securities Co., Ltd. Utsumiya Securities Co^, Ltd. 


* wi L p ^L°;nS a S a lS* p iS' a «t° r - After all energy is S 
gramme loans and to what ex- where many banks, have 

tent it vnU continue ite lending not my developed their own 
on a- project-toproject baas. The expertise, 
problem here is 1 th*\t if ADB 17 T 

moves more closely into pro- A. 


Vickers da Costa Ltd., 

Tokyo Branch 


Takagi- Securities ' Co., Ltd. 

Ito-Gin Securities Co., Ltd. 


Jardine Heming (Securities) Ltd., 

Tokyo Branch 


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ASIAN DEVELOPMENT BANK V] 


Financial Times Wednesday April 21 1982. 



ADB projects present considerable scope for Western contractors and technology — although in most instances business is not easily won 

Opportunities for Western groups 
in a competitive game 


WITH TOTAL loans to various 
projects averaging over $lbn a 
year, the ABB offers a wealth 
of opportunities for interna- 
tional *- consultants, contractors 
and equipment suppliers. The 
Japanese, Americans and Ger- 
mans top the list of contractors 
for ABB-funded projects but it 
is a competitive game open to 
all of ADB member countries. 
Alt’ contracts except those worth 
under $150,000 are open to in- 
ternational bidding. . . 

Last year the total value of 
contracts arising from ABB 
projects loans reached $656m, 
bringing the cumulative total to 
$4.5bn covering the 15 years of 
the bank’s existence. The 
Japanese have traditionally 
been the runaway leaders of the 
pack, winning the heftiest por- 
tion every year. Of last year’s 
total value they bagged $193m, 
or 29 per cent 

Technology 

The Americans were a distant 
second, getting only 5-2 per cent 
worth $34m. They were how- 
ever, the leading provider of 
consulting services in power 
projects.- The U.S. has done 
well in contracts requiring high 
technology, while transmission 
lines and sub-station equipment 
contracts tend to be won by 
Japanese.* European, South 
Korean and Indian groups. 

Mr John Bohn, Jr, the U.S. 
executive director at ABB, ad- 
mits that the Americans’ record 
oh procurement has been dis- 
appointing. ** While certain 
technologies and geographic 


proximities tend to favour the 
Japanese, such factors pale 
against the aggressive way they 
conduct business in Asia,” says 
Mr BobiL 

Mr Bohn Is anxious to im- 
prove the U-S. share of pro- 
curement at ADB and believes 
that in order to persuade 
American suppliers to join the 
bidding they must have enough 
information on ABB’s bidding 
procedure and opportunities. As 
an initial step he has persuaded 
the Bank to publish all pro- 
curement notices in trade pub- 
lications. He has even estab- 
lished a system in his office at 
ADB's Manila headquarters to 
ensure that the flow of infor- 
mation to U.S. suppliers is con- 
tinuous and smooth. 

From the Aslan region the 
South Koreans and Indians 
have kept up a fair pace. The 
Koreans were the fourth-rank- 
ing contractors and suppliers 
with almost $22m of contracts 
last year. India scored about 
$12m. 

It is also remarkable that 
the value member countries 
can . draw from contracts are 
greater than what they actually 
put in in terms of paid-in 
capital. Britain, for instance, 
has obtained a total of $238m 
in contracts for ABB-assisted 
projects during the last 15 
years. In contrast its total con- 
tributions .(to both ordinary 
and special funds) amounted to 
$193.8m. 

Bank officials agree that the 
British and the Western. Euro- 
peans have joined the hand- 


mOCUBEMENT JN ADB 
member COUNTRIES 
< Sm) 

Cumulative 
as of 
Dec 31 

1981 1981 


Japan 

1,413-9 

193.1 

UA 

327J1 

34A 

West Germany 305.7 

20.7 

South Korea 

259.3 

2L8 

UK 

2383 

33.4 

T«ui)|a 

123JS 

LL6 

France 

9741 

10.6 

Australia 

92.0 

4.6 

Switzerland 

83.7 

6 JS 

Netherlands 

83.4 

0.6 

Canada 

71.6 

2.6 

Total - 

4^03.0 

656.0 


wagon to Asia. “Because of the 
recession In Europe and 
because of the flurry of activi- 
ties in ABB's developing 
member countries, the Euro- 
peans are jumping at these 
opportunities,'' an official said. 

ABB and its borrowers use 
consulting services and equip- 
ment procured exclusively from 
the Bank's member countries. 
Although the bonk monitors 
procurement procedures, the 
borrower deals directly with 


equipment suppliers and con- 
tractors and although the 
Bank's engineers examine all- 
tender documents in detail to 
make sure that specifications 
are not restrictive the 
borrower’s implementing 
agency decides on type and 
quantity of equipment. 

Turnkey bidding is not used 
in ABB-financed projects. In- 
stead the Bank requires the 
borrower to select consultants 
who prepare detailed tender 
documents for various blocks 
of equipment; so allowing 
partial bids. The “lowest 
evaluated competent bid” and 
not simply title lowest bid wins 
the contract However, there 
have been occasions of dis- 
agreement between the Bank 
and the borrower in determin- 
ing the lowest evaluated bid. In 
exceptional instances, when the 
differences seem irreconcilable, 
the borrowers look for other 
sources of financing. But more 
often than not the borrowers 
agree to adjust their evaluation. 

The ADB, however, is not 
completely free of human short- 
comings. As in any big 
organisation red tape 
occasionally pops up. Loan 
negotiations can be as quick as 
four months but can also take 
as long as two years. In general, 
however, loan approval takes 
one year. Corruption, fortu- 
nately, is not endemic. There 
are no celebrated incidents but 
a five-year-old ' case that can be 
recalled by a few officials in- 
volved a petty bureaucrat who 
was eventually “moved” to a 






department that' had absolutely 
nothing to do with procurement 
. Early.' this month' the Bank 
came under fire from Indian 
contractors. A report received 
from Mew Delhi by the Bank’s 
headquarter; said that at ’a 
workshop on project exports 
organised by the Association of 
Indian Engineering Industry 
(AIEI) an Indian spokesman 
complained that the Bank has 
been, “showing undue pre- 
ference .to Japanese and South 
Korean companies in projects it 
finances.?.- The., spokesman- 
claimed, that Indian exporters 
were often . bypassed on the 
grounds' that they do not have, 
original technology. 

Unfounded 

An official at the Central 
Projects Services Office said 
that AJETs accusations are 
unfounded and* that the mis- 
understanding arises from 
“ ignorance of the Bank’s 
procurement procedure-”. 

Selection of consultants and 
contractors and the ordering of 
equipment are often done 
immediately after approval, so 
private companies usually keep 
track of the progress of loan 
negotiations and make contact 
with the borrower’s executive 
agency even during the early 
stages of loan negotiations. The 
.Bank’s information office pub- 
lishes the monthly “Operational 
Information on Proposed Pro- 
jects ” which describes the 
projects being negotiated. Mean- 
while the business edition of 
the “ Development Forum,” 
published by the United Nations 
fortnightly, contains tendering 
notices for all ADB, World Bank 
and African Development Bank 
projects. 

E. T. 



— • . ... - 

Geographically the Bank’s province of lending broadly embraces southern 
and South-East Asia down to the Indonesian archipelago and mciudes 

Philippines and Papua New Guinea . 


a 


Port Qasim as 
to Karachi 



New Issue 
April 15, 1982 


This advertisement appears 
as a ■matter of record only. 


ASIAN DEVELOPMENT BANK 

Manila, Philippines 

DM 150,000,000 

974% Deutsche Mark Bonds of 1982/1992 



THE HUGE French-built 
gantry cranes on the iron 
ore and coal terminal of 
Pakistan’s new Port Qasim 
will come into their own this 
year as the nearby Plprl steel 
plant moves into full 
production. 

Soon tiie cranes will be 
off-loading 2m tonnes a year 


Offering Price: 
Interest: 
Repayment: 
Listing: 


99%% V' ■ -'V ?■'. / : . 

.9%% p. sl, payabieoq Apri(15af oachyear 
April 15, 1992 at par . f-V - -W. ... « 

Frankfurt am Main and DusseTdoriT - ' ' ■ 


Dresdner Bank 

Aktiengesellschafc 


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Banqua da NeufCar, SeWambergar, Mallet 
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Berfmer HamW*- und Frankfurter Bank 

Copenhagen Handatsbank 
Credit Subs* Firet Boston 
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Dsutsch* ffirouantrate 

- Deutsche Kommunalbank — 

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Biropen* Banking Company 
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Goldman Sachs International Carp. 
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. Samoa! Montagu & Co. 

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The rfifcfco Securities Cft* (Europe] Ltd. 

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Union Bank of Switzerland (Securities) 
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Bank ofTokyo hmr na tK m»l 
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BanqUeFrmqRS* chiComroereo'Extfaieur 
Banqua Internationale ■ Luxembourg SA. 

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The Bank’s staff, which is drawn from over 30 
nationalities, is laigely professional. Career 
advancement appears to be something of a 
problem. 

Competent and cool 
but sometimes 
frustrated staff 


THE Asian Development Bank 
undoubtedly has under its roof 
a host of brilliant and dHtigent 
professionals; outsiders, includ- 
ing private bankers, can be 
effusive in their praise of the 
bank staffs proficiency. Indeed 
an ABB man, like a typical 
international bureaucrat, comes 
across as competent, cool and 
confident But be hi nd the 
smooth exterior displayed by 
managers and staff there lurk 
some frustrations about the 
Vi mi te on the rewards the bank 
can offer. 

The bank's very nature as a 
multilateral development bank 
(MDB), with member-cowl tries 
trying to influence appointments 
and events at the. bank, means 
that promotions frequently 
become political decisions. The 
highest positions reachable to 
career staff — those of depart- 
ment deputy directors and on 
rare occasions those of execu- 
tive directors— ore occupied 
either by political appointees or 
bw men who tend to hold the 
posts for life. Movement up the 
promotional ladder for 
careerists can be painfully slow 
and the end-result is that the 
young breed of technocrats 
approach ADB with wry tenta- 
tive motivations. 

Apart from, the career staff 
there are those who are on 
secondment from Governments 
of the member countries and 
serving two- to three-year con- 
tracts. They comprise' about a 
third of the bank’s 450 profes- 
sion alls. Staff In this group serve 
their terms, do their work well 
but eventually go back to their 
homelands. Those of them who 
discover that they enjoy their 
posts at the bank can extend 
their contracts only a few times. 

Predicated 

A number of staff members 
and managers do feel that “the 
bank's organisation is built on 
impermanence'’ and that it 
could extract more from the 
talents of the staff if their jobs 
were predicated on a more per- 
manent basis or if they could 
see fair chances of easily mov- 
ing up the hierarchy. 

This may be asking the bank 
for the stars, however. The 
mere fact that ABB exists on 
member countries’ financial con- 
tributions and organisational 
support invariably requires it to 
play the political game. It Is not 
difficult to understand why ADB 
k more disposed to dance to 
the tune of tts donors rather 
than of its career staff. 

But what is probably not so 
easy to understand is the 
bank’s tendency to rely on too 
many consultants. One engineer 
at the bank, who is considered 
an “energy specialist” feels 
that it seems to believe in the 


over-specialisation of its staff. 
The tendency is to hire new 
consultants for new and major 
loans instead of using staff who 
can handle new projects. “In 
my case, for example, I am 
called an energy specialist. But 
I am an engineer and I can 
easily get involved with other 
infrastructure projects,” he 
said. 

. The hi ring of hew consultants 
requires additional secretarial 
and clerical support and this 
has led to the rapid expansion 
of ABB’s manpower. It now 
has 1,200 employees, about 500 
of them professional staff, and 
its 13-storey building op 
Manila’s famed Roxas Boule- 
vard is overflowing with people, 
especially bored Filipina secre- 
taries. The bank has had to rent 
three other office spaces to 
accommodate the overflow. 

Discussion 

Like a maturing tree, whose 
old brandies eventually wither 
away, ABB has grown to a size 
where some of its employees 
have become — in President 
Fujioka’s cold-blooded words — 

“ dead wood.” Just a few 
months after the new President 
assumed his position he made 
it plain that the bank needs 
some cobweb sweeping. He has 
met Ids senior officers for a 
frank discussion of administra- 
tive problems and has asked for 
a review of the performance of 
each department’s staff mem- 
bers. 

Everybody seems to expect 
that heads will roll as a result 
of Mr Pujioka’s determination 
to axe the dead wood. Although 
the Bank machine continues to 
roll, uncertainty hovers above 
the heads of staff members. 
For them the new President is 
indeed a different man— his 
style is unconventional for a 
Japanese and he is a President 
who wields a hatchet A senior 
officer at the Bask; said that 
the review, the suspense and 
almost anything ' happening at 
the Bank are all part of the 
“FuitokanisatiKA” of the ABB. 

A plan that Mr Fnjioka wants 
to implement is a "rotation 
scheme” whereby some of the 
middle- and loweroranlting staff 
of each department will be. 
moved to different sections for 
certain periods. The objective 
is to let each staff member get 
a taste of all the other depart- 
ments. Said a senior officer: 
“This may be Fujioka’s style of 
testing his staff. Those who 
prove inflexible and cannot 
adjust to departments other 
than their own may find- that 
their days with the Bank are 
numbered.” 

E. T. 


of iron ore and almost Lto 
tonnes of coking coal, which 
will then be carried at high 
speed to the Soviet-built steel 
plant along a 4.7 km conveyor 
belt— the third, longest in tile 
world. 

The 8550m port, located 
tibont 40 km east of Karachi, 
is nearing completion. 
Besides the iron ere and coal 
terminal, one berth Is ready, 
three more will be ready in 
June and the remaining three 
complete In 1984. 

While the Pakistan 
Government has funded about 
60 per cent of the coat of this 
urgently needed pert out of 
tts own coffers, the project 
has attracted considerable 
foreign interest and help. '. 
Foremost, the Asian. Develop- 
ment Bank has provided 
$48.6m, with the UK . 
providing g26au. Funds 
■ also come from France, -West 
Germany, Holland, Japan, 
Bulgaria, Canada and Italy. 

When complete the port 
will handle 3Am tonnes of 
cargo for the steel mill and 
a further 31-4m tonnes of 
general butt cargo, mostly 
wheat, rice and fertLfeen*. , 

The port will do a great deal 
• to relieve congestion at 
Pakistan’s only other major 
port at Karachi, which is more 
than a century old. Indeed 
much of the momen tu m for 
the new port was built up in 
the dreadful years of 1977 
and 1978, when major harvest 
failures combined with .a 
critical shortage of cement to 
force an emergency import 
programme which very nearly 
brought Karachi port to its 
knees. 


.. • . '• 

While such - emerfpmcy *' 
imports are' no longer neces-^ 
sary, the completion of But® 
Qasim makes & ahnost certafiT* 
that such a crisis wiB-nmfV' 
happen « pin- -■ v 

Port Qasim -has neverihc^V 
less had its heada«*ra. Hmvy*r' 
siltage in the wandering " 
channels of what nsed to be n . 
the River Indus, which links; 1 
Port Qasim with the Indian- - 
-Ocean, has posed major tech- < t 
nieal headaches and generated < 
heavy additional running'’ 
costs— currently about $15h£ 
-a year. - ;•••••■ „ ; - 

Xn addition, a Govermnenf- 
decision that the -new pory 
should pay its way from thfe 
outset has forced' it to charger 
comparatively high tariffs. 
Wharfage fees are three times. , 
those of Karachi port, berth-" - 
age eight times higher and" 
port dues - three times as 
great* - j 

* As a result Die port autho- 
rities will need to maintain a 
rapid throughput of ships if 
. they are to avoid tosses. This 
may be possible, since the 
port has several advantages 
over Karachi. Apart from 
being a modern, efficient port, 
it is unhampered by the mad--, 
mid rail congestion In Karachi 
and wfll therefore 'be able to” 
cany butt cargoes into . 
Pakistan’s interior with nrach i 
greater efficiency. 

It is also cheek by Jowi _ 
with KarachTs designated'!' 
export processing wme and a 0 
10,000-acre industrial develop^ 
ment zone. Once: developesr.. 
these zones will look to Porfc? 
Qasim as a lifeline for im* J 
ports and exports alike. 

David Dodweff 


DEVELOPMENT FINANCING 
FOR A BETTER TOMORROW.- 
PORIOU. FOR US. 



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By Richard Lambert in New York 


IF SHEER will-power could 
keep an airline flying. Bra niff 
International ; would have a 
secure' future. ’ 

! In television, chat shows, 
press briefings, -banking - par- 
lours, and anywhere else that 
a: worthwhile audience . can be 
gathered, the chairman and 
chief executive, Mr Howard 
Putnam, is to be heard banging 
borne a single message — Braniff 
has a -future. 

-In case anyone missed the 
point, he called a speech be 
gave the other day: “Braniff 
1984.” 

•• But it is .a hard- road to the 
promised land, and BranifTs 
future could well be decided 
one' way or another in the next 
month or two. The U.S. airline 
industry > is in dire' financial 
straits and Braoiff— still one 
of the ten largest carriers — is 
one -of its weakest members. In 
t?re last three years its aggre- 
gate losses have- climbed to 
$3 10m after crediting $92m of 
gains from property and equip- 
ment sales. At the end of last 
year, it had a deficiency on 
shareholders’ funds or around 
$90m, and it is currently try- 
ing to restructure debts of 
S733m from 39 major lenders. 

Mr Putnam acknowledges the 
key challenge. "We have got 
to prove to our leaders that it 
is better to keep us going than 
to let us go.” he says. 

At the end of last week, 
Braniff received a blow which 
could make that task a lot 
harder. The Civil Aeronautics 
Board rejected a request to give 
its immediate approval to an 
agreement whereby Braniff 
would have transferred most 
of Its South American routes to 
Pan American. It said that the 
competitive implications of the 
deal — which was to have taken 
effect next Sunday — were so 
complex and contested that no 
decision would be made until 
July. 

This is a serious setback for 
Braniff, for two reasons. Pan 
American was going to hand 
over $30m for the routes— 820m 
in. the near-term and SlOm in 
1983. Braniff will keep the $7m 
which Pan Am has already 
handed over, to cover the ex- 
change of various passenger 
facilities at Houston. But the 
remaining $23m of badly-needed 
cash is now in question. 

In addition, the decision 
means feat Braniff is stuck for 
the time being with routes. that 
lost it $I5m in 1981, and which 




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are doing even worse so far 
in 1982. Pan Am. with a fleet 
of fuel-efficient TriStars and a 
productivity deal with its cabin 
crews that would have enabled 
it to take on the services with- 
out adding to its wage bills, 
could have made good money 
on the routes. For Braniff. run- 
ning the services with 14-year- 
old DC-Ss, they are a gaping 
wound. Other airlines now have 
a chance to bid for the routes, 
but Mr Putnam is not sitting 
back passively. Although Pan 
Am is still the preferred choice, 
bankers Lazard Freres have 
been instructed to tout for other 
deals. “We’re not going to sit 
back and wait for July. We're 
going to press for something 
to happen this week, if we can." 
says Mr Putnam. 

As with some of its competi- 
tors. BranifTs troubles started 
when the U.S. airline industry 
was deregulated late in 1978. 
Seeing- what it regarded as an 
unrepeatable chance to break 
into a new. scale of operations. 
Braniff went for broke. In the 
months following deregulation, 
it moved to 18 additional cities 
in the U.S., and to four new 
destinations in Europe and 
another four in the Pacific-Far 
East. Its fleet was expanded 
accordingly. 

Within a few months, it was 
experiencing a severe cash 
shortage.' which slammed' the 
brakes on its dash for expan- 
sion. But as fuel costs mounted 
and the UA economy began 


to- wobble, BranifTs finances 
skidded out of control. 

Mr Putnam, aged 44, appeared 
on the scene last autumn. For 
the previous three years he had 
been running Southwest Air- 
lines. which bas a reputation 
for low costs and high profits. 
He set similar goals for Braniff. 

“ An airline for the 1980s has 
got to have a very low cost 
structure so that it can survive 
the lean times.” he says. “ The 
days are gone when you can 
afford to have a 65 per cent 
load factor as your break-even 
mark.” 

BranifTs yield per passenger 
mile was around 13 cents in 
1981 . and it had no less than 582 
different fares. The new plan 
was to reduce these to a sinsle 
“ Texas class” aimed eventually 
at generating 12 cents a passen- 
ger mile, but pitching initially 
at around ll to 11.5 cents. That 
involved nominal cuts in fares 
of up to 45 per cent, -but the 
average reduction was to be 12 
to 15 per cent. 

At the same rime. Braniff 
aimed to reduce its costs per 
passenger mile from around 8.5 
cents to 7 cents. One cent a 
mile represents SlOOm off costs, 
and by slashing into overheads 
on all sides. Braniff has cut its 
way down to 7.3 cents a mile. 

With this cost /yield formula, 
Braniff reckoned it could break 
even with passenger load factors 
around 55 to 58 per cent, and 
slant to make big money over 60 
per cent 


The trouble is that the air- 
line has not so far been able 
to get the revenue needed to 
swing back into the black. In a 
viciously competitive market 
place, yields have beep coming 
in ot well under 11 vents a 
mile, and they probably slipped 
below 10 cents in March when 
in an effort to generate volume 
— and cash — Braniff was effec- 
tively giving away one free 
ticket with every one it sold on 
a number of important routes. 

The forthcoming first quarter 
figures are likely to show more 
hi® losses. 

However Mr Putnam is not 
fighting a lone battle. Returning 
to DaUas in February after a 
difficult trip to Washington, he 
was given a rousing reception 
hy a crowd of 300 banner-wav- 
ing employees. “ It was one of 
the most emotional experiences 
in my life,” he says. 

The story had a big impact in 
Texas. “ All the big betters in 
Dallas swuDg their support 
behind us.” he says. “ They said 
Texas wasn't like the rest of the 
country: they weren’t going to 
let a Texas company go down.” 

One businessman bon eh t 
S6.000 worth of rickets to show 
his feelings, and others took 
advertisements in the press and 
on Television urging people to 
back “ ottr Dallas-based airline.” 

All this has not gone down 
too well with the of her Da 11ns- 
based airline— American Air- 
lines. which has a vastly 
stronger financial structure than 


Letters to the Editor 


Ratepayers and the London equalisation scheme 


From the Director of Finance 
Wandsworth Borough Council 
Sir. — My friend, David Hop- 
kins, Westminster City Trea- 
surer, evidently did his usual 
excellent job far Westminster 
when discussing London rate 
equalisation with Mr Pauley 
(April 15). I look forward to 
discussing with him elsewhere 
his ingeniously confusing ex- 
planations why the domestic 
-.ratepayers of’ the ridbesl 
boroughs should even further 
reduce their share of London's 
rale burden, when they already 
benefit directly from the lower 
poundages produced by those 
boroughs’ high commercial, rate* 
able values; they, also enjoy the 
henefit of spending ort services 
in excess of government guide- 
lines, without the financial 
penalties Imposed by the Govern-' 
ment on other local .authorities 
in these . circumstances: and 
they have been" totally protected 
from the Government's grant 


reductions on borough services 
since the equalisation scheme 
was devised, while the other 
Inner London boroughs have 
lost grant equivalent to a lOp 
rate in cash terms. 

Mr Pauley attributed to 
Wandsworth the argument that 
the City of London and West- 
minster should be treated as if 
they were within Che Govern- 
ment’s block grant system, to 
arrive at a “ negative grant ” 
for each. Evidently Mr Hopkins 
had not mentioned that this was 
in fact the original basis of the 
equalisation scheme, and that 
Westminster has effectively 
avoided updating the original 
1980 calculations for two years. 
.Mr Hopkins. . apparently sug- 
gested to Mr Pauley that this 
argument would imply an “im- 
practical ” additional cost of 
£90m (a 29p rate) to West- 
minster: in fact my calculation 
implied only an additional £14m 
(a 4frp rate), and even this 
modest amount would not have 


been levied on Mr Hopkins's 
already well -protected domestic 
ratepayers. - 

With such an accumulation of 
privileges for Westminster rate- 
payers. Mr Pauley should be 
surprised - if he finds much 
sympathy for “ Westminster's 
case ” anywhere other than per- 
haps the City of London. Every- 
one recognises that the City' is 
a special case and needs to be 
dealt with by some special 
formula. It is convenient for 
Westminster’s argument that it 
should identify itself with the 
City but the disparity o-f rates 
per head between the two 
authorities shows that the City 
stands alone. 

In any event, London rate 
equalisation should fully com- 
pensate for the differences in 
resources between Inner London 
local authorities which is the in- 
tention c*f the scheme. 

Albert Newman. 

The Tovn Ball, 

Wandsworth High Street. SW18. 


Out-of-date 
trade marks 

From Mr V. Loir.' " 

Sir,— Barry Fox’s article, 
"Support sought for .London 
siting of trade . marks office r . 
t \pril 45). deals mainly with 
the decline or _ Patent Office 
service in relation to patents 
rather than trade marks. The 
same applies to . trade marks, 
and as a matter of interest it 
is now taking up to nine months . 
before a trade mart application 
is examined, and if there are 
any objections it -can take a 
considerable time before regis- 
tration is granted. 

The public search room at the 
trade marks : registry is not 
keeping up to date with filings 
of new trade marts, and last 
month, for example, there was 
a delay of about five weeks 
from the date of filing until 
information about the mark 
reached the search room. This 
could lead to real problems for 
a manufacturer who believes he 
has chosen a. name which is not 
in conflict with any other trade 
mark, only to find at a later 
date that an earlier filed appli- 
cation has priority. 

We recently learnt that the 
trade marts registry has 
decided to scrap its annual 
name index (the last one to be 
published wiH be the . 1978 . 
edition later this year!), and 
this means that it will be 
virtually impossible to obtain 
full details of trade marks, 
owned by a particular company. 
Lei us hope that the publicity 
concerning the. siting of . the 
EEC trade marks - office in . 
London will bring . about an 
improvement in sendees sti thp 


Patent Office in relation to both 
patents and trade marks. 

V.P. Law. 

K. V. Marshall and Co., 

19, Stambournh' Way. 

West. Wickham, Kent. 

Battery egg 

production 

From the General Secretary. 
Compassion .in World Farming. 

Sir, — I am surprised that the 
Financial Times 'should give 
space to -- the scare-mongering 
lactics of Ted Kirkwood (April 
14) and his fellow battery 'egg 
producers. 

Re. claims that if battery hens 
are given more space, in their 
cages they will become aggres- 
sive. Is he .saying that batter)’ 
farmers are at present cram- 
ming so many birds into a case 
feat they can’t flgbt? With fully 
outstretched wings a chicken 
measures about 30 inches across, 
yet is usual to- keep five such 
birds in a cage only 20 inches 
wide and 18 inches deep. 

The EEC proposal to increase 
the floor space per bird from 
460 sq cm to 500 sq cm or even 
600 sq cm is meaningless. Bat- 
tery cages should and can be 
phased out of the EEC over fee 
next five years — as the agricul- 
ture committee of the House of 
Commons recommended -should 
be done last July.' 

Batiery cages are cruel, there 
can be no doubt whatsoever 
about that. There are riable 
alternative systems at -present 
operating in this country as well 
as in Switzerland, Germany and 
Holland. Such systems could 
supply the nation’s eggs just as 
cheaply- as batteries. There are 
in st fonr factors that determine 


egg yield — lighting, genetics, 
nutrition . and . management. 
Given these four; fee particular 
system used makes little dif- 
ference. If Ted Kirkwpod could 
not manage without these cruel 
battery cases be should get out 
of egg-production and make way 
for someone who can.. 

Peter H. Roberts. 

20. Laron t Street, 

Petersfield, Hampshire. 


Buying contributes 
to profits 

From ifr MV Minford 

Sir, — I was stimulated by 
reading Christopher Lorenz's 
feature on GEC*s “ cost reduc- 
tion miracle” (April 14) but 
was disappointed to see that 
despite half the production cost 
being in bough t-in components, 
the buying representation in 
each of the three working teams 
was described as “a clerk.” 
This appears to reflect the 
persisting attitude in much of 
Industry feat baying is a routine 
function which merely carries 
out Instructions from other 
quarters— somehow I doubt if 
such a philosophy pertains in 
Lord Weinstock’s organisation. 

Buying must be recognised 
not just as a service function 
but very much as a direct 
profit-contributor whose edu- 
cated managers with commer- 
cial experience and technical 
background exercise, initiative 
and imagination, often showing 
the lead to engineers, chemists 
and accountants. 

M. Minford. 

Clec House, 

473 Crewe It pad. 

Wistaston Crew?,. 
rhe^hH-e. 


Pitfalls in quick 
promotion 

From Mr H. Galgut 

Sir. — Your Management Page 
article (April 16) on the pain- 
ful experiences of newly- 
promoted managers, points to a 
failing that is endemic in busi- 
ness in this country. Even those 
companies that provide train- 
ing. and have management 
development schemes, usual!)' 
stop short when it' comes to 
helping a manager negotiate The 
. abrupt step to a higher level of 
responsibility. 

It is nor difficult ro identify 
the new elements that will need 
to be grasped by a manager 
moving from one job to another, 
nor to design and implement a 
traitring programme covering 
those elements. (It requires 
some effort, but it is not diffi- 
cult.) 

Admittedly, some promotions 
(too many) have to be made 
quickly because of the sudden 
departure of an individual. But. 
in most cases, it is possible, with 
fee co-operation of fee incum- 
bent, to put down in writing a 
comprehensive list of objectives, 
responsibilities, tasks, timita- 
tions, problems etc. that can be 
worked on by fee designated 
manager borh on his own. and 
together with the incumbent, 
over a period of time before the 
move becomes effective. It may 
also be necessary to make pro- 
vision in fee programme for 
training, in interpersonal skills 
or in the basic principles of 
matters that were not pre- 
viously important such as finan- 
cial control or data processing. 

This procedure gives fee 
newly-promoted person more 
.confidence than he might other- 
wise have in his ability to do fee 
job. Where people have been 
promoted without training, they 
have sometimes made costiy 
mistakes, or failed to recognise 
potentially profitable opport- 
unities. and often there has been 
a drop in fee morale of their 
subordinates. 

The best time to train mana- 
gers for greater responsibility 
is before they are promoted, not 
afterwards; and fee best place 
to do it is where they work, for 
there, the facts of the job can 
be imparted. And it is the 
assurance feat one knows one's 
business feat gives confidence 
and authority. 

Henry Galgut. 

7 Knoll Court, 

Farquhar Road. 

Thihnc.h Wood Pnrb. .CFTO 


Glyn Gen in 

Braniff but which is still none 
too pleased about a surge of 
public support for a head-on 
competitor which, in its view, 
has been slashing prices to stay 
in business. 

American says that S3 per 
cent of fee widely publicised 
bitterness between the two big 
Dallas airlines is “ strictly a 
media event.” Tt welcomes the 
fact that the CAB is looking 
into anonymous allegations that 
it has been acting in various 
ways to undermine Braniff, 
which it describes as “ridiculous 
and baseless charges.” 

Yet There is no mistaking the 
hostility in the Rramff ramp to 
American's intervention irv its 
prono.sed deal with P3n Am. 
In a last-minute filing with the 
CAB. It offered to help subsi- 
dise losses incurred by Braniff 
on the South American routes 
in return for a fill hearing on 
the application. 

Accordine to Mr Putnam, 
these proposals were a “ cleverly 
designed transparent sham.” He 
claims that American is Irving 
lo dominate the Dallas-Fort 
Worth region, and “ wants to spo 
B raniff disappear from the 
scene r as auicklv as possible so 
that Tt can raise fares." 

But fee immediate worry is 
ahout how BranifTs lenders 
will ■ react to the South 
American news. The disposal 
of these routes was a vital part 
of the reconstruction proposals 
which fee airline presented lo 


23 banks. 14 insurance com- 
panies and two big suppliers 
at the beginning of this month, 
and they will now have to be 
persuaded feat an alternative 
solution is possible. 

The details of the refinancing 
plan, contained in a compli- 
cated inch-thick document, are 
a closely kept secret. But there 
is little doubt that it would in- 
volve. among other things, 
swapping a large amount of 
debt into equity, thus giving the 

lenders a substantial sharehold- 
ing in the rpborn Braniff. That 
will cause ideological problems 
for some of the banks. The 
suppliers. too. face some 
awkward decisions — notably 
Boeing. The airline has a com- 
mitmem to pay Si 91m for fern* 
new 747 aircraft, which ore 
ready for delivery — and 
which it cannot use. 

The lenders have already 
made major concessions, defer- 
ring principal and interesi pay- 
ments from February 1981 to 
the end of September this year. 
The official deadline for a 
definitive agreement is October. 
1. but everyone hopes that 
things can be resolved well 
before that. 

In a way the very weakness 
of the airline industry is one 
of BranifTs. best hopes. Findins 
a buyer for a Boeing 747 would 
be no mean feat at a time when, 
according to Mr Putnam, there 
are around 100 Jumbos avail- 
able for sale on fee market 
There could, he says, be a 
market for a few 727s. but 50 
or 60 would be a very different 
st or>’. 

So long as Mr Putnam can 
persuade everyone that the 
promised land can ultimately be 
reached, the airline is in with 
a chance. . . \ . 

Meanwhile, fee present prob- 
lems may cause more price- 
cutting. If the CAB refuses to 
make a quick decision., Mr 
Putnam says, the airline may 
have lo get more creative — and 
if the all important summer 
bookings do not start to pick 
up soon. “ we may have to 
make our own summer.” In 
both cases that would mean 
further bou»s of cut-throal 
pricing in a bid to boost volume 
at the expense of passenger 
yields. 

As he has done throughout 
Mr Purnam rates The likelihood 
of survival at better than 50-50. 
The next few months will 
decide. 


Lombard 


A shock after 
the oil shock 

By Nicholas Colchester 

WHAT WILL international charged more by bankers: their 
banks do now feat fee recycling oil consumption was less sensi- 
chaJJenge is fading away? Twice tire to price chan that of fee 
within the last decade the banks industrial countries, while their 
played their part in absorbing commodity earnings arc hard 
the balance of payment sur- hit by recession. So their 
pluses, and financing the borrowing needs remain high, 
matching deficits, which resulted while their creditworthiness 
from two upward bounds in the dwindles. 


price of oil. 


The corollary is that developed- 


Those two oil shocks triggered country borrowers can drive a 
a sort of quantum jump in harder bargain than ever. They 
global financial interdepen- need to borrow less because 

dence. with private flows of their oil and commodity bills 

finance eclipsing fee “ official ” are down. The banks want to 
flows (between governments, lend to them more. The result is 
central banks and institutions that spreads on loans to indus- 
like the IMF). Last year a Bank trial coumries are still at rock 
of England study showed that bottom. 

the sura of world current Admittedly this view oJ the 
surpluses and deficits had joiernational banking business 
doubled since fee first shock *0^^ excessively upon oil 
from 1-1 i Per cet '* of ma rtet ant j balunce-o (-payment borrow- 
economy GNP to 2-3 per cent. ing Thl . neu . financial inter- 
and that the larger imbalances dependence j S much more com- 
had been financed P nn «paH> plex lhan lhat , ln temational 
through the capttal markets and hanks increasin „ Iy do domestie 

the banks. banking business in other 

Now, and for the second countries. Balances of payments 
time, a key element m those concern only net flows of funds 
imbalances is disappearing. The across borders : there arc gross 
gross surpluses of the oil nows of bank finance too — 
exporters (i.e. the surpluses of outward deposits matching in- 
Those still m surplus) were ward loans — which are bur- 
811 Ibn in 1980, dropped to gconing as the global banking 
S“5bn in 1981 and will, 3 c cord- W eb is woven ever thicker. In 
ing to a Bank of England csti- f ac1 ihe volume of international 
mate, be down 10 some S2t)bn bank lending correlates only 
in 1982. So will fee international poorly with the volume of 
banking business now atrophy, deficits requiring finance, 
like a body-builder whose v , . , . 

weights have been taken away? Ye ‘ * ose «** surpluses were 

* . _ ' very large. They were equal to 

At the start- of the year _th well over half of all current 

SSSs a itSiM 

StS^*5ssd5^i 

swaag. 

Bankers and their ^egulatoJs i? 

were becoming more risk- business of wholesale inter- 
conscious. Above all. they said, "ortonal hanking will have to he 
hanks were becoming more s|laKei t ouL 
profit -orientated in their inter- The second hunch is that con- 
national activities, goinc for sortium banks will be parti- 
profit and not for business cularly ill-placed in this pro- 


volume. 

Alas, competition is fee ulti 


cess. They rely heavily on the 
inter-bank market for their 


male arbiter of spreads, not funds. The size and extra- 
locic. just as logic fails to deter- ordinary growth of lhat inter- 
mine the price of airline seals, bank market partly derived 
It requires a Herstatt-like jolt from the geyser of oil deposits 
to the herd -psych ology to stop which arrived through too small 
banks coins for slim pickings a number of institutions to be 
wherever thev can find them, re-lent directly to the outside 
S»ch a group shifi in ba«k world. As the seyser fails the 
thinking has only half-occurred, importance of direct access to 
Heavilv indebted developing customer deposits will re-assert 
coumries are being avoided or itself. 


- •y'H- -V.,- V. C ‘ 

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Financial Times Wednesday April -21 19© Ivi 


Companies and Markets 


COMPANY 


=S& 


Smiths Industries rises £1.2m 


FOE THE 26 weeks ended 
January 30 1982, pre-tax: profits 
of Smiths Industries have risen 
From £9.97 m to £11.17m, on sales 
ahead by 15 per cent to £187.85in. 
compared with £1 63.55m. 

However, the group warns that 
it may not prove possible to 
maintain the high level of profits 
achieved in the second half of 
last year — £16.3Sm — and this will 
make the objective of continuing 
jis record of unbroken profit 
growth more difficult to achieve. 

Deferments in military pro- 
curement and a slow down in 
the replacement of civil aircraft 
will constrain profits from aero- 
space in the short term, although 
demand remains relatively high 
and there are encouraging 
opportunities for the longer 
terms. Prospects for the medical 
activities are good, but trading 
conditions for many other 
businesses are likely to remain 
depressed. 

Trading profits for the first 
half were 18 per cent higher at. 

£ 14.11m. Interest charges rose 
from £2.01m to £2.94m mainly 
because further investment was 
required to finance the growth 
of overseas activities. 

Tax charge increased by £0.3m 
to £2.79m and after 'deducting 
minorities of £70.000 (£54,000) 
net available profits came 


HIGHLIGHTS 


Lex studies Thomas Ti Rings’ annual report and accounts 
with particular reference to the £100m gilt-edged book that 
the company is running at present. Interim figures from Smiths 
Industries showed an advance in pre-tax profits from £l0m to 
£ll.lm but no thanks to any improvement in domestic demand. 
Maintained profits for the year seem the likely outcome— for 
the. fifth successive year. The column goes on to examine recent 
events in the gold market and then comments on the results 
from the British Transport Docks Board which, though in loss, 
is a candidate for privatisation. - On the inside pages Britannia 
Arrow makes a counter offer for General and Commercial 
topping the earlier bid from Ref age Assurance. William Low 
comes, up with a £32m rights issue with its half time figures 
and yet another new company. Continental Hierowave, joins 
the TJSH. 


while progress on the restructur- 
ing plan for original equipment 
activities is broadly in line with 
the programme. However, the 
forward picture in the automo- 
tive sector remains one of great 
uncertainty as to the level of 
domestic and export demand 
resulting effect 


EDITH rises 
to £2.23m 
and pays more 


aod the 
margins. 
la the 


on 


through ahead from £7.42m to 
£8.31m. 

In order to reduce disparity, 
the interim dividend is being 
raised to 4p net per 50p share, 

against 3.7p last time, absorbing 

£2.Q7m (flifcn), the previous 
year's total was 10.5p from 
£26.35m pre-tax profits. 

An analysis of the half-year 
sales and trading profits, with 
comparatives restated, shows 
respectively: aerospace £45.45m 
(£39. 5m) and £6.48m (£5.24m): 
automotive £28.5m (£26. 15m) and 
£519,000 loss (£1.63m loss); dis- 


tribution £30.75m (£3Q.7m) and 
£120,000 (£L4m); industrial 

£2S£m (£22.85xo) and £2.68m 
(£2.61m): marine £10.05m 

(£1 1.15m) and £125,000 loss 
(£476.000 profit): medical 

£14.6m <£10m) and £3.36m 

(£L77m); and Australasia / 
Southern Africa £29.7m (£23-2m> 
and £2.13m (£2.13m). 

The aerospace and defence 
activities continued to achieve 
good results. In the automotive 
areas sales to the after-market 
benefited from an increase in 
the demand for tachographs 


. distribution business 

the pressure on margins evident 
in 3981 continued. The seasonal 
pattern of trading of these busi- 
nesses favours the second-half, 
but as yet there is little sign of 
any underlying upturn in 
activity. Results under the 
industrial heading continued to 
hold up well in difficult trading 
conditions. 

The North America marine 
activity is also- seasonally biased 
to the second half and satisfac- 
tory results are expected for the 
year as a whole. In the UK. how- 
ever, demand from the Royal 
Navy was very low, the commer- 
cial market remains depressed 
and a loss was incurred. 

Medical activities in the UK 
and U.S. are continuing their 
excellent progress: The econo- 
mies of both Australia and South 
Africa are less buoyant than in 
1981 but profits have been 
maintained. 

See Lex 


Net revenue after las of the 
Estate Doties Investment 'Trust 
(EDITH) rase from £2. 17m to 
CL23m in the year to March 31, 
19S2 and the final dividend is 
being raised from an adjusted 
1.44p net per 25p share to 1.5p 
making a total of 2J5p against 
221 p (adjusted). 


Receiver for 
Michael Barber 


Ultramar looking for upturn in 1984 


MR MARTIN PAGE of chartered 
accountants Peat, Marwick. Mit- 
chell and Co. Norwich, has been 
appointed receiver and manager 
of Michael J. Barber of Pulham 
St Mary. Diss, Norfolk. 


ALTHOUGH HE says it would 
be rash to make a profits fore- 
cast for 1982, Mr Arnold 
Lorbeer. the chairman of 
Ultramar .says the board is very 
optimistic about the long-term 
outlook For the group. 

As reported March 4, pre-tax 
profits of this oil and gas 
exploration and production 
group rose from £ 126.3m to 


£1 SO Jim in 1951. Total sales 
jumped by £0.45bn to £1.39bn. 

Mr Lorbeer says in his annual 
statement that the group’s 
financial position is strong and 
it has again improved net work- 
ing capital. Ultramar has also 
been able to continue and 
accelerate its capital expendi- 
ture programme.' 

- Capital expenditures for 1982 
and 1983 are estimated at a 
total of about £45 Om {£1 48.8m 


for 1931). It is expected that 
on completion of this major 
programme in early 1984. the 
group will have the basis for 
continued growth and sharply 
increased earnings. 


The chairman remarks that 
all the signs point to 1984 as 
the year in which Ultramar will 
double its gas production in 
Indonesia, produce a lighter mix 
of petroleum products at the 


Quebec refinery, have a new 
source of North Sea crude oil 
and be operating a modern 
fleet of medium sized oil-bulk- 
ore carriers. 

The largest portion of the 
group's capital expenditures 
however, continues to be [or 
finding and developing new oil 
and gas reserves. Ultramar is 
restudying this programme, in 
the light of lower crude oil 
prices and changing taxation. 


The company. with 12 
employees, is the sole distributor 
of Alfa-Laval Milking Equip- 
ment, in Norfolk, Suffolk and 
Cambridgeshire. In addition to 
installation work, the company 
services milking equipment, 
supplying spares and sundry 
farm equipment. 


Mr Page said that the company 
would continue to tirade for the 
time being and is currently seek- 
ing a buyer for the business as 
a going concern. 


HEPWORTH CERAMIC HOLDINGS 


PLC 


Recession deepens but profits up 


“We are now so structured that the effect of a comparatively small 
upturn mil have a dramatic effect on oar profitability however long 

and deep the slump may be we shaU beat it — and, 1 may say, we are well 
placed to do it/* 

Peter GoodaU {Chairman) 


The Chairman, Mr. Peter Gcodaft, in his circulated statement 
referred to the great difficulties which arose in jy8o from the effects of 
the recessions the Government s deflationary process, the strike in the 
steel industry * and the downturn in business. The Chairman commented 
on the steps taken at the time with the aim of producing a Group 
capable of making acceptable profits at lends of turnover which 
equated to twice those of the second half of 1980, which was the lowest 
level in lining memory. He continued; 


and worthwhile research and development. We have always 
maintained this sort of effort, and bearuse it is so essential we have 
in 1981 spent some £6m on research and development. 


Dividend. Having regard to the difficulties of the past year and 
the continuing low levels of trade so far thi s year, yonr Board 
proposes a final dividend of 3p per share, the same dividend as that 
paidfari98o. - - 


With die benefit ofhmdsight, it would appear that the 
policies then adopted have not been entirely unsuccessful; 

Wehavehad to operate in 1981 with atnmbverwhichism 
real terms very much, less than that “twice the second half of 1980* 
Nevertheless, in spite of this further downturn we have increased 
our trading profits before interest from £21.901 to £26.701 and it 
is an interesting speculation as to what these profits would have 
been had turiwver remained ar “twice the level of the second half 
of 1980”. 


Slump in the United States. Recession is not confined to die 
United Kingdom. In 1981, the United States slipped into a very 
severe depression and trade fell at a most astonishing rate. The 
slump indie U.S. took place at a tremendous speed and we have 
been, engaged in the whole of 1981m trying to rationalise and 
. reduce our operations to produce the same sort of picture that we 
have achieved in the UJcC, i.e. operating profitably in a much 

ym yller rpflrkfrT- 


After reviewing dmsioTud actmties the Charrman concluded: 
Future. I stress throughout this report recessions and downturns, 
lack of Government spending, deflationary policies, and so forth, 
which are taking place all over the world, and I apologise far 
referring to these year after year ; but they really are the very crux 
of the whole matter, and this is at pres cm a never-ending battle _ 
which we must continue to win. I frankly do not see in the U.K. in 
the foreseeable future the sort of levels of demand which were 
normal in the 1960s and the 1970s, What I do see, however, over 
the next two or three years is a gradual improvement in de m a n d in 
this country and in Europe; but America will in my opinion, in the 
medium term, bounce back with vigour in the same way that it has 
faHen, to prodiice vaj acceptable lrwels of demand to us operating 
o vex there. 


At this date our markets are as flat as they were in 1981, and 
there is no’ indication of any sustained upturn in de man d. 


We have taken the necessary steps to control the situation, and 
I now expect m ride out the stonn in America on very much the 
same baas as we have ridden out 1981 in the United Kingdom. 


Since 1974/75, when it became apparent to ns that the 
markets in which we operate in the U.K. were going into 2 dedine, 

we started our policy of acquisition in the XJ.S. to get the Group 
back on the road for growth and to offset the continuing fell in the 
U.K The slump in America has ar this point in time completely 
upset this strategy. I remain convinced, however, that the strategy 
is correct. 


I am pleased that we have so fer mastered time effects of the 
depression, that in spite of a further severe downturn in business 
in 1981 we have increased our profitability on that achieved in 
1980, and that to produce the sort of profits which you rightly 
expect from us, we do not require anything like the sort of upturn 
■which would be necessary to brmg'demand back TO the peaks of 
the 1966s and early 1970s. We are now so structured that the effect, 
of a omtparatively small upturn will have a most dramatic effect on 
onr profitability. 


Steps taken to combat “frightful difficulties”. It has been, 
oux policy for many years to mothball plant and to bring it back 
into operation as and when there have been upturns in the market 
allowing us to do this. We have, however, had to review the whole 
COncqrthaving regard to the prolonged aad severe downturn in 
our markets, and the rationalisation programmes which have been. 
rgrriffd ont have made there-opening of some of our mothballed 
plant hig hly unlikely. We have also written off as an extraordinary 
it pm those which, we shall not now re-^xnnrmssion. 


We shall therefore keep up our never-ending drive for 
• greater efficiency based as it is on ever-Iower cost 
production, knowing that provided we pursue these goals 
with ruthless determination -and we shall do so -then 
however long and however deep the slump may be, and 
wherever it may spread, we shall beat it -and, I may say, 
we are well placed to do it. 


So this has been a very difficult year, of recession on top of 
recession, of a colossal cut-back in Gove rnm e nt spending, and of 
frightful difficulties in the industries we serve. We have, 
therefore,had to take further steps in 1981 to keep the Group 
viable, competitive and profitable : 

—we have had to dose or mothball twelve of our plants. 

—a further 600 have had to be made redundant. 

— r?piT ?l expenditure has been cut back tp £izm. . 


Res ea r ch and development programme maintained. The 
whole future of the Group depends on its being a. technological 
leader in the markets in which it operates, and- this me ans t hat we 
T TfliK t trMlcfe, and c ontinue m make, very great efforts in effective 


Results in brief 



Year ended 31st December 

1981 

1980 

£m 

a&n 

Turnover .. • • . . 

289.7 

263^ 

Profit before tax .. 

24,1 

22.3 

Profit after tax . . 

15.8 

16.0 

Capital expenditure .. . .. 

12,2 

18 a 

Shareholders 7 interest. . . .. 

1 ^ 1.3 

155-2 

Earnings per share .. . . 

zo.ozp 

lo.i6p 

Dividends per share «« 

5 *SP 

5 - 25 P 


" Annual General Meeting ofBepwotrth Ceramic Holdings pic will be held on 12th May in London. 

Copies vf the Report and Accounts can he c&tainedfnm the Secretary, Gaufax Bouse, Tapton Park Road, SJufiidd Si 0 3 IJ. 


CH Leaders in clayware, refractories and industrial sands 
and prominent in plastics, foundry resins & equipment, engineering etc. 



John Menzies 
over £9m mark 


Boustead ~ 


to £1.42m 


A one-for-25 capitalisation 
issue is also proposed. Earn- 
ings per share are given as 3.7p 
(2.34p adjusted). 


AFTER TAKING into account 
the adverse effects of the 
recession, high unemployment 
and the weather conditions in 
the vital pre-Christmas trading 
period, the directors of news- 
agent and bookseller John 
Menzies (Holdings) say the 
results for the year ending 
January 31 1982 are “ better than 


might have been expected.” 


Before tax the net revenue 
amounted to £3-27m (£3.2zn) 
and tax is estimated to take 
£1.04ra (£l.Q3zn). 


EDITH is an investment trust 
specialising in the acquisition 
of shares io private companies 
to hold as long-term invest- 
ments. It is managed by Indus- 
trial and Commercial Finance 
Corporation which is a sub- 
sidiary of Finance for Industry. 


’re- tax profits improved by 23 
per cent from £7.66m to £9.43m 
on turnover substantially higher 
at £336.75is compared with 
£2SS.18m. an increase of 17 per 
cent The final dividend is effec- 
tively raised from 2.5p to 3.05p 
net for a total of 4.5p (3.75p 

adjusted). 

The directors say that most 
of the group’s business depends 
upon customer discretionary 
expenditure and is vulnerable in 
a year of deep recession such 
as has been experienced. Sales 
in some categories were below 
budget with the consequence 
that stocks are higher and cash 
balances lower than expected. 

. Despite this, they sqy the 
group repaid the £3m term. loan 
and maintained the strength of 
its balance sheet, in which the 
net cash position is satisfactory. 
They say shareholders' funds 
have increased to £38.6m. and 
the current cost basis of cal- 
culating shareholders’ funds now 
exceeds £50 m. 

The pre-tax figure was struck 
after profits less losses on sales 
of fixed assets of £270,000 
(£313.000), leasing Income of 
£414.000 (£197.000). leasing 

finance costs totalling £364.000 
(£150,000) and other interest 
costs of £899.000 (£920.000). 

There was a tax charge of ' 
£1.23m (£I.27m), and after 

minorities of £163.000 (£122.000) 
and extraordinary items (good- 
will). £580,000 (£336.000). 

attributable profits were higher 


at £7.46m compared with £S.34m. 
Dividends absorb £l.46m 
(£L25m). Stated earnings per. 
25p share improved from 2L$p 
to 28.2p. 

The directors say that fore- 
casting in a company such as. 
Menzies — with its heavy 
dependence on Christmas trading’ 
— is hazardous, but having taken 
this into account, they are opti- 
mistic about the current year’s 
trading aad expect to enter 1983 
“in good heart.” 

On Monday the company 
stated Its intention to make an 
offer for Lonsdale Universal, 
which would make a “ sensible " 
extension to its activites, 



• comment 


John Menzies ploughed through 
bad pre-Christmas weather and 
falling disposable real incomes— 
which had dragged profit expecta- 
tions down to around £S-5m — to 
record an increase before tax of 
more than a fifth to £9.4ra. Sales 
are biased (on average) about 
55/45 towards the second half, 
which includes both Chrisnnas 
and the January sales. Costs 
being more evenly spread, the 
patera of profits is much more 
heavily skewed— roughly 90 per 
cent falling in the final six 
months. Forecasting at this stage 
is therefore hazardous, and the 
first intimations of a better 
Christmas in 2982 must be 
treated with caution, the more 
so as volume has yet to establish 
a significant upward trend. 
Wholesaling is less seasonal, at 
present enjoying the extra sales 
generated by tabloid bingo, and 
holding on to gross margins. The 
shares yield 2.6 per cent — 
covered more than five times by 
current cost earnings. Up 17p 
to 253p, they trade-in a thin 
market — at nearly 17 times fully- 
taxed earnings. 


ALTHOUGH TORNOfe 
Boostead, investment^ faq 
company, raov«j - 
£8 l22qi to £44.45ma 
fell from £2,14mto 
1981. 

Mr Alan ChMtofc qfe ri&t- 
says that the results 
quarter of 1982 do 
any real upturn is 
ditious, especially m-_ 
but (here are stg&' 
improvement. ■; 

The final dtridemT b«s*| 
held at, 0.75p which 
total at l-23p. KarnJua l. 
share bn a net has^-fe? 
as l-32p (2£2p) mM - ft 
basis as LS2p (WTp),: - .-: 

Pre-tax . profits were, 
after increased interest 
of £l.Q?m (£754,000),' 
also higher investment 
of £525,000 (£271.000) • uffl! 
mate profits of X&ftfiPO "i 

£262,000).. . JtHT ' 1 

Tax was higher at , 
against £1.02nL Jttnurtty- 
were lower .'ht 
(£373.000). There won 
ordinary credits of 
compared with previous 
of £94, 00ft 

On a current 'cost 
tax profits were 
(£l.54i»). 



British Vita 

prospects 

‘reasonable’ 



NatWest’ s Argentine 
exposure ‘very small’ 


REFERRING TO the dispute 
with Argentina over the Falk- 
land .Islands, Mr Robin Leigh- 
Pemberton. the chairman of 
National Westminster Bank, said 
at the annual meeting that the 
bank’s existing exposure with 
the country formed only a very 
small percentage of Nat West’s 
total international assets. 


and vague remarks on the level 
of taxation borne by the bank- 
ing sector: producing uncertain- 
ties only too. well reflected in 
the subsequent movements in 
bank share prices on the Stock 
Exchange: 

Since the Budget Nat West’s 
share price has fallen from 
470p to 418p at the . dose 
yesterday. 


Commenting on the bank’s re- 
lationships with Argentina, he 
said that for the past 18 months, 
NatWest had taken a cautious 
stance in view of the economic 
problems facing that country, 
while acknowledging its long- 
term potential. 


DIVIDENDS ANNOUNCED 


year 


■■11*. 
• • -•/ 

Totafr 

last’ 

yeaF, 


In compliance with., the 
Government’s order which pro- 
hibits banks from making pay- 
ments or transferring funds on 
the instructions of the 
Argentine Government or 
Argentine residents, all banking 
negotiations with Argentinian 
representatives had been 
suspended.. The bank hatf also 
withdrawn from the lead 
management in a $200m credit 
being put together for SEGBA 
— 4he Buenos Aires Electricity 
Generating Board. 


On the domestic front, Mr 
LeigK-Pembton said of the 
Budget, that in an otherwise 
astute performance,, the Chan- 
cellor made some unjustified 


Data Carre- Total 
Current of . sptmdlqg for 
- * payment payment' div. 

Bodycote Intel 2 

Boustead 

CLRP Inv Trust 
Edinburgh Inv Trust 

EDITH 

Green’s Economiser 2i 

Hamilton Oil 

Lament Holdings 

Wm. Low ; 

John Menzies 

Harold Perry Motors 

Silvermines - 

Smiths Industries ...jiiat 

Tilbury Group 

United Parcels ........ 

Websters Group 

Wei beck Investment 
Dividends shown pence per share net exceprwhere otherwise stated. 

* Equivalent after allowing' Tw scrip Ifesue. fOn capital 
increased by rights and/or acquisition issues, t USM Sbet 
HEiaaf of sot less than 5.9p forecast f Irish currency throogboat- 
U To reduce disparity. ** Pinai -ef net less than 1.9p forecast 



0.75 

• y __ 

0.75 

1.25 

1.25 . 


1.6 


1.6 

— *• 

3.5 


L23 

- Juhb2ff 

1.12“ 

2JS " 

1.96* 


1.5 

- __ 

1-44* 

2.3 



2.88 

May 29 

2.68* 

5.75 

4.03* 


nil 

— 

nil. 

1 

nil 


0B 

July-1 

0.7 

L2 

LI 

int 

2.1 

. Junel 

2.1 

— 5 

7.5 


3.05 

— 

2.5* ■ 

45 

3.75* 

• • - 

2.25 

— 

2 ..: 

.3.75 

35 


21." 

• ■ — • • *. 

3- 

3.5 

3 


.4 :* 

'Junel7 

ttr 

’ ” _ 

105 


19 

■- — 

.16.38 

25 

2238 

if-1 

3.3 , 

* ‘ 

25: 

4-5 



l.Tt 

— 

. is 

2.5t •• 

23 

... 

1-25 

...’ — 

1.1 

2 

m 


RirSale 

THE SUFl^^ DIVISION 

of v? 

CravAlimentos SLAjCJL > : 


CrayAIimentos S.A.C.L owns and operates one /J. 
of die largest chains of supermarkets in ChBe, wi&23- 
modern stores in metropolitan Santiago- 

CravAlimentos S. A.CLI. is putting nip for sale --f 
the assets (less liabilities) of. its supermarket ditfston*;. ./;"2 
All bids must be received at the office of Crav •.>£." 

Alimentos S-A.C.L by 5:00 p-nn, local trme, onl\fey ~ 

24th, 1982. For further Monnation, including the i- vis 
terms and conditions of the bidding procedure# please 
contact the company or its New "York represe ntative: The ~ 
Chase Manhattan Bank, N.A*, 1 Chase Manhattan . ‘ 
Plaza — 13th floor. New York, NY 10081, U.S.A.,* . — : . 
Attention: Mrs- V* Ferrentino, Telephone: ""-'T 

(212) 552-4938, Telex: 423315 CHASESfflG; 

Crav Alimentos S.A.CL 
Ahumada li-12th floor 
Santiago, CMe 

Telephone: 724-008 v.'- 

Telex : 40626 CRAV a : - ^ : 


iCRAVAl 


►ta • 









y- 

W. -■ 


The international operations m 
B ritish VrU, manufacturer 
polymeric products, 0fl 
course for another’ reisotfahle 
year, although: there is a con- 
tinuing world recession, Mr Fi-a. 
Parker, the chairman, told-ihe 
annual meeting. . 

He ‘said the first quartaintf 
tim year ra the UK reflected &b 
lack of consumer demand Am 
the only likely source for 
stimulation of tire retail tttfe. 
was the reduction in the mart 
gage interest rate- . 

Any demand arising fromjLre. 
stocking programme depe? 
on a fall in interest rates, 
were influenced by high 
can interest rates. 

Of the markets the-. — _ 
served, be said the furniture 
bedding industries were rstiU 
experiencing sales at -a^.dpw 
level. - The general todutitfal 
and automotive indust rie s 
shown signs o £ a slight imanpre- 
ment, but it was too earis^to 
determine a tread. „ . ^ 


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(onfi' lU 


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"Mil i 


Financial Times Wednesday April 21 1982 

^g?p|i2J!fes and. Markets 


23 


UK COMPANY NEWS 


1l , . 


Wm. Low 25% ahead: £3.2m rights Bodycote makes 




'"V, 

' K 
i» 

•I . 


iii 


)!,,N Pi’flv 

ri ‘‘Minabii' 


4| J i-x . 


*M»! VII) 


REPORTING A 25 per cent in- 
crease in pre-tax profits for the 
> .'Jlprt 28 weeks of its 1981-82 
~-flbmUJ year, Wm. Low and Co, 
; "the ' Dundee-based supermarket 
I operator, also announces a rights 
issue to raise £3-2lm, net of 
.expenses. 

f ;. n ;Mr J. p. Rettie,. ifee chairman, 
says the profits advance— from 
. J .'£836,000 to £1.05m for the period 
“Vto March 20— has exceeded the 
t ■budgeted figure and was despite 
only a modest rise in turnover 
..tp £63 .2m (£57 An). 

He forecasts that In the cur- 
* xent year ending September 4 
: JBS2 taxable profits will not be 
Jess than £22m, against £l-§m 
previously, including gains on 
sales of assets of £180,000 
' (£3271000) and after deducting 
.Josses from discontinued fast 
Jjfood activities of £230,000 
. (£264,000). 

This improvement in profits is 
expected to be achieved with 
.-.only a small contribution from 
. the recent development pro- 
.. .gramme, but this should make 
a more significant contribution 
following years. 

‘(‘“■.The interim dividend is un- 
changed at 2.1p net per 20p 
_ Share but the board intends to 
-recommends final of not less 
'tKan 5-9p (5.4p> per share. 

Mr Rettie reports, that the 
improved mid-term performance 
has been brought about by tight 
financial control and operating 
costs as a proportion of sales 
have been reduced to levels 
below those of last year. 


The company has not yet dis- 
posed of tiie leases of its 'two 
fast food outlets which were 
closed last August It is conse- 
quently incurring further rental 
and other costs which together 
with provisions are estimated to 
amount to £OJ23m this year. 

Operating profits for toe 28 
weeks were ahead from 
£901,970 to £L.37m, including 
losses of £109.376 (£196080) 

from discontinued activities — 
turnover from this source in 
1980-81 was £0-28m. 

Interest charges rose from 
£257.557 to £313,963 while last 
year's pre-tax profits included 
£L9 1,343 gains on the sale of 
assets. Tax charge was £546,948 
(£434,593) giving a net surplus 
of £>04*876 compared with 

£401,163. 

The chairman says the com- 
pany has a very active develop' 
mem programme under way. The 
new supermarket in Grange- 
mouth (12,000 sq ft) was success- 
fully opened . last month and 
another will open in Rosytfa 
(10,000 sq ft) in August. Build- 
ing I® progressing at new major 
units at WiLshaw (20,000 sq ft) 
and Oban (15.000 sq ft). 

The rights issue, wtoicft has 
been underwritten by Noble 
Grossart, is on tihe basis of one 
new share for every three 
ordinary shares held at 145p per 
share. 

Mr Rettie explains that the 
board is continually reviewing a 
wide range of opportunities for 


expansion as it believes that the 
company’s future success and 
profitability depends on the 
development of larger and more 
modern outlets and the continu- 
ing improvemeot of existing 
sites. 

At September 5 1981 the com- 
pany bad a total sales area of 
347,000 sq ' ft, representing an 
increase of 125 per cent over its 
sales area in 1B73. Operating 
profits generated by that area 
increased ever that period from 
fOiftn to £&27m. 

To date; the , company's 
development programme has 
been financed by a combination 
of internally generated cash Sow 
and bank borrowings, and Low 
intends to continue this pro- 
gramme by providing an 

additional 80,000 sq ft of selling 
space by December d 1983. 

The chairman comments that 
while the company has consider- 
able borrowing facilities avail- 
able to -it. the board believes that 
the development programme 
should be combined with the 
maintenance of a prudent balance 
between shareholders' funds and 
borrowings and that it is 
appropriate to raise additional 
capital at this time. 

In the short term the proceeds 
of toe rights issue will reduce 
borrowing levels and interest 
charges. It will also provide the ■ 
company with a broader capital 
base from which to continue 
expansion. 

Full details of the issue and 


reports on the profit forecast are 
set out in a circular which will 
be despatched to shareholders 
together with the provisional 
allotment letter □□ April 21. 

• comment 

Down 2p to 19Sp yesterday. 
Low’s shares have gained nearly 
a third since October. Specula, 
live bid talk has beeQ behind 
muds of this advance, but the 
group has also exceeded its own 
profit expectations with a 25 per 
cent jump at the interim stage. 
Vol ume w as fai rly sta tic overall, 
but operating margins Inched up 
.to 2.3 per cent from 1.9 per cent 
last year. The improvement so 
far is largely thanks to cost 
control The second half, how- 
ever, should be aided by contri- 
butions from Low's larger, more 
competitive stores. Low’s average 
store size is now 5500 sq ft, 
against 3,500 sq ft only a few 
years ago. With an eye on the 
hugely profitable Sainsburys, 
Low now aims to have aJI its 
unfits in the 8.000 TO 25,000 sq ft. 
range. The rights money will 
be used to reduce borrowings, 
which bad crept up £lm to £4m 
in toe last year, and provide the 
new base for Low's ambitious 
expansion plans. The prospective 
yield of 6.2 per cent on the ex- 
rights price represents a healthy 
premium to toe sector, while toe 
fofiydiluted. fully- taxed p/e of 
around 13 discounts Low’s new 
appetite for growth. 


some recovery 


Tilbury Group recovery 
continues: l-for-2 scrip 


Utd. Parcels reaches £6m 


i* 

. <<: 

'5 

■■ 


•AFTER RECOVERING from 
-losses of £1.15m to profits of 
£814,000 in the first half. Tilbury 
Group, formerly Tilbury Coo- 
'irictiag Group , maintained its 
-recovery with pre-tax profits of 
■-42.18m in 1981 as a whole. There 

■ were losses of £629,213 in 1980. 

Turnover of this civil englneer- 

■ j£g, building and public works 
'contractor fell from £55. 73m to 

- £47!33m. The final -dividend is 
raised from 16-37S86p to 19p for 
a higher total of 25p compared 
With 22-37886p. 

The directors say that during 

- the year, a partial recovery of 
-the indebtedness of the Nigerian 

- -company to the group was 

■ achieved, amounting to £591,509, 
and this is included, in the profit 
as an exceptional item. 

"They say however, that in 
view of toe downturn in the 
Nigerian economy, toe group has 
decided to discontinue trading In 
that country. It has disposed of 
its 40 per cent .interest in 
Tilbury Contracting Company 
(Nigeria) and . of all issued 
capital .of toe subsidiaries. 


hitherto known as Tilbury Inter- 
national. 

The consideration was not 
material in the context of the 
group's assets and the terms are 
such that the group will have 
no farther financial exposure in 
respect of these companies; 

The board says liquidity has 
continued to be dosely con- 
trolled, resulting in a reduction 
of bank indebtedness during toe 
year of some £2 .4m. The group 
is financially stronger than it 
has been for several years and 
it accordingly views the future 
with confidence. 

The pre-tax figure included 
associates of £28,861 (£19,856). 
There was a tax charge of 
£565,149 (£189,010) and after 
extraordinary credits of £113,321 
(£2. 82m), stated earnings per £1 
share were 81.76p (41.48p loss). 

The board proposes to split 
each of toe present shares into 
four shares of 25p and to allot 
one new share for every two 
held by way of a scrip issue. 

. On a CCA basis, pre-tax profits 
were £839,926 (£L82m. loss). 


AFTER AN increase in second 
half taxable profits from £2 34m 
to £3. 15m at United Parcels, the 
express carrier, pre-tax profits 
for the year to January 30 1982 
improved from £5.04m to £(L05m. 
Turnover was £7.59m higher at 
£40. 19m. 

The final dividend is raised 


from 2.5p to 3.3p, which effec- 
tively increases toe total from 
3.5p to A5p. 

After higher tax of £2.03m. 
against £L47m earnings per lOp 
share were up from 14.4p to 

15.9p. 

On a current cost basis 
attributable profits were £2. 55m 
(£2.13m). 


IN THE second half of 1981. 
Bodycote International, the in- 
dustrial clothing, metal treatment 
and textiles group, made up some 
lost ground but finished the year 
with pre-tax profits behind at 
£Q.92zn compared with £l-0Sm. 
At midway, taxable figures had 
fallen by £361,000 to £401.000. 

Turnover for the 12 months 
fell from £28.04m to £26.39m. 
However, reflecting & lower tax 
charge of £196,000 against 
£373.000, stated earnings per 
25p share edged up from S.SSp 
to 9.G2p. 

The final dividend is a same- 
again 2p net for an unchanged 
total of 4p per share. 

The company says that trade 
has remained sluggish and is 
still unpredictable despite the 
initial momentum provided by 
an improvement in October and 
November last year. There are 
a few hopeful signs hut there 
is no underlying confidence on 
which to make a reasonable 
forecast/ 

In the medium term the 
board will continue to move 
the group forward, probably by 
further acquisition, the timing 
of which will depend ou oppor- 
tunity an improvement in 
liquidity and a better trading 
climate. 

Because the cost of financing 
the group’s borrowings is now 
a significant percentage nf total 
trading profits, the board’s pre- 
sent policy is to improve 
liquidity by the disposal of 
surplus assets and the further 
unwinding of stocks in activities 
which are being terminated. 

The implementation of this 
however has been slowed down 
by current economic conditions, 
although it is expected that 
most of these intentions should 
be realised during 1982. 

There were extraordinary 


losses of £D.6m (£0.59m) 

attributable to toe cessation of 
trading at William Denby and 
Sous, and other extraordinary- 
losses and provisions of £Q.49m 
f£0.75m) relating to the 
rationalisation and cessation of 
trading. Deferred tax relating 
to these items amounted to 
£1.14ni in 1980. 

On a current cost basis, tax- 
able profits for toe year were 
£412,000 (£503,000). 

• comment 

At 5Sp, the most attractive 
thing about shares in Bodycote 
is a yield of more than 10 per 
cent. Having halved in the year 
to December 19S0, profits before 
tax might seem to have held up 
better this time round, falling 
by a mere 15 per cent. Bui 
things were worse than that. 
Operating profits fell by almost 
a third while something like 
£Q.3m of interest— on borrowings 
that are still being earned — 
were taken below the line 
because they relate to businesses 
now closed. Body cote’s pack 
of companies has been constantly 
shuffled over the years, with 
the declared aim of cutting 
down the original dependence 
on textile manufacture. 
Closures of Joyce Fabrics and 
Devernn in the current year will 
continue this pattern. liberating 
(it is hoped) some Flim of 
working capital to help ease 
total borrowings which are now 
in the £4m region. Various pro- 
perties are also on the market 
but apparently not moving too 
readily. If cash flows in accord- 
ing to plan, dividends will pre- 
sumably be safe but the metal 
treatment and protective cloth- 
ing divisions— which Bodycote 
currently regards as its strong 
suit— need volume before earn- 
ings can recover. 


Websters surges ahead Small advance at Lamont 


AS PREDICTED at the time of 
last October's rights issue toe 
final dividend at Websters 
Group, printer, publisher and 
wholesale book distributor, is 
1.7p, which raises the total from 
2.3p to 2Jjp for 198L 

Pre-tax profits rose sharply 
from £820.000 to £l-33m on turn- 
over £7.08m higher at £37.44m. 
At the interim stage the taxable 
figure was £227.000 (£106,000). 

The directors say that although 
the trading climate remains 
uncertain they are confident of 
continuing to make progress. 

Pre-tax profits were struck 
after lower interest charges of 
£280.000 (£295,000). Tax rose 
from £54.000 to £550.000. There 
was an extraordinary debit this 


time of £48.000. Earnings per 5p 
share emerged lower at 7.14p 
compared with 7-21 p. 

On a current cost basis pre-tax 
profits were £856,000 (£423,000).. 


Yearlings 
at 13|% 


i 

The interest rate for this 
week's issue of local authority 
bonds is 131 per cent, down one- 
eighth of a percentage point 
from last week and compares 
with 12 j per cent a year ago. 
The bonds are issued at par and 
are redeemable on April 27 1983. 

A full list of issues will be 
published in tomorrow’s edition. 


TIGHTER MARGINS, caused by 
the effects- of the prolonged 
recession and increased competi- 
tion from home and overseas, 
meant that despite a substantial 
jump in turnover from £6 .22m 
to £9.94m, Lamont Holdings’ tax- 
able profits for 1981 just rose by 
£37.000 to £461,000. 

However, with earnings per. 
lOp share stated higher at 3.8p 
(3.3p) tbe final dividend is 
being raised to OBp (0.7p) net. 
making a total for the year of 
IJSp (l.lp). 

At the half-year stage, this 
holding company, with property 
development and management 
life assurance, textile manufac- 
turing and engineering sub- 
sidiaries. was ahead with tax- 
able profits of £131.000 (£121,000) 
on turnover of £5.01ra (£1.8ra). 


However. Sir Desmond Lorimer. 
chairman, said at that point that 
the figures were not directly com- 
parable because of acquisitions 
made during I960. 

Taxable profits for the year 
were struck after depreciation of 
£404.000 (£242.000) and interest 
payable of £304.000 (£334.000). 
There was a tax credit of £23.000 
(£92,000 charge), and after 
minority interests of £44.000 
(£4.000) and extraordinary debits 
of £41.000 (£169.000 credits) the 
attributable profits emerged at 
£487.000 (£505.000). 

Sir Desmond says that it is 
the directors’ objective that 
growth in profitability and divi- 
dends should continue and that 
they persist in their endeavours 
to be more efficient and 
competitive. 



1 982 


THE UNITED KINGDOM 
OVERSEAS GROUP 
of 

SMITH KUNE & FRENCH 
LABORATORIES LIMITED 

isprOTdtoaimotnK£recdptct 

THE QUEEN’S AWARD FOR 
EXPORT ACHIEVEMENT 


This award has been granted for outstanding 
export performance in human pharmaceu ti cal 
products. During (be puxi ihiwjvars exports 
rose by mure than 2i times, 

Wfc extend our thanks to all our employ ccs both in thcUnrted 
Kingdom and Overseas, wliu lute made this Award possible. 



SMITH KUNE &FRENCH LABORATORIES LIMITED 
Wfelwyn Garden City, Hertfo nishim, England. 


FTB have identified 
14 guidelines to help 
you improve your 
financial 

communications. 


Phone Alex Hurst, FTB's Chief Executive, on 

01*4058733 

and make an appointment to see bur unique 
60 minute presentation. 

foster Turner & Benson Advertising Ltd 

Chancery House, Chancery Lane, London WC2A1QU 


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1981 was upML all the way for the 
insurance industry And despite a small 
but welcome improvement in our 
profits it was no less of a problemfor 
GeneialAccident ...... 

We had to fight hard to retain 
existing business. The recession has 
reduced demand far insurance pro- 
tection andtoo many insurers havebeen 
left chasing too little business. And as . 
competition intensified, premium rates 
fell-in some cases to near suicidal 
levels: 

. Ittook courage to maintain under- 
writing standards when it meant losing 
good business to less disciplined 
competitors. 

But we redoubled our efforts. And 


although our premium growth was 
lower than we would have liked, our 
underwriting performance has not 
declined to the same extent as many 
of our competitors. 

Prospects for 1982 are no less 
challenging. We must continue to 
generate premium growth without 
sacrificing underwriting standards. 

And that will take stamina and 
judgement 


■ -.wx \7.r 


rs 





We take your risks. 


,i.w: .■ : 





For a copy of the 1981 Annual Report, write: The Secretary General Buildings, Perth, Scotland PHI 5TP 

. : — . . . . ■ ? 
























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24 


f inancial Times Wednesday April 21 | 9 ®L£ 


Companies and Markets 


UK COMPANY NEWS 


Hamilton Oil hit by fall 
in Argyll field production 


Welbeck 
falls to 
£ 409,581 


Perrys ahead 9% despite 
drop in vehicle sales 


A FALL in oil production from 
Hamilton Oil Great Britain's 
Argyll field operations from 
5 -81m barrels to 3.6m barrels hit 
the group's results for 1981. 
Turnover fell from £25 .87m to 
£20.44m and taxable profits 
dropped from £18.87® to £l3J7jn. 
And with earnings per lOp 


board meetings 


share of this subsidiary of HazniK year's dmetaWe. 


TTib following companies have notified 
dales of board meetings to the Stock 
Exchange. Such meetings era usuattjr 
hold for the purpose of considering 
dividends. Official indication! ate net 
available as to whether dividends k» 
nuarwu or finals and dta subdivisions 
shown below am based jnainty on loot 


ton Brothers of the U.S. stated 
lower at I2.9p (l&4p) no further 
dividend is to be paid following 
a lp net distribution paid on 
April 2. 

Pre-tax profits included interest 
income of £3-57m (£3 -92m) and 
a share from limited partnerships 
of £29.000 (nil). Tax took £6.72m 
f£3,65m) and after extraordinary 
debits of £617,00 (nil) the attri- 
butable profits came out at 
£5-S3m (£9^2m). Dividends 

absorb £500,000 (£5.1Sm) leaving 
remined profits of £5.33® 
(£4. 04m). 

The major part of the com- 
pany's income is currently 
derived from its 28.8 per cent 
interest in the ATsyll field in the 
UK sector of the North Sea. The 
new low level of production, 
particularly d urine the second 
half of 1981. resulted from two 
extended shutdowns of the TW5S 
floating production platform 
which services the field. 

The first was a scheduled shut- 
down. of approximately eight 
■week? tn carry out structural 
modifications on the platform. 
The second was an unscheduled 
shutdown during the last six 
weeks of the year following 
damage caused by an ususually 
severe storm. Production was 
not resumed until January lL 
19S2. but since then, it has been 
running at a high level. Total 
production from the Argyll area 
during the first quarter of 1982 
was 1.67m barrels. 

Mr J. W. R. Sutcliffe, managing 
director, says that in 1981, two 
wells were successfully com- 
pleted in the Argyll area. One 
was an infill well within the 
existing field and the other an 


TODAY 

interims; — McKedmi* Brothers. MTO 
(Mongols), Wads Potteries. 

Rnats:— Biddle. Contort Rotaflex. 
Cussins Property. Danish ' Bacon, 
Delta. Empire Stores. E. Fogarty. 
Hsden. Harris Queenswajr. Hawker 
Siddaley. London and Continental 
Advertising, RMC Securities Trust of 
Scotland. Spear and Jackson. Son 
Life Assurance, Western Motor. 
FUTURE DATES 
Interims: — 

Fittwliian April 20 

Jessups May 12 

Transvaal Qonalld. Land ft Ex. May & 
Rnaka: — 

Blue Circle Industries Aprd 28 

Oaviflj and Newman ......... .. April 30 

Da Vera Hotels and Rests. ... April 23 

Debenhama May 21 

Holyraod Rubber April 29 

Hongkong (Selangor) Rubber April 29 

Kuala Selangor Rubber April 29 

London Atlantic Invest. Trust May 19 
Marshall (Thomas) (Lesley) April 22 

MsrshaH'a Universal May 6 

TurriK - April 27 


cent stake— was the first in the 
North Sea to start producing. 
Yet far from running dry, Argyll 
seems to he enjoying a renewed 
Lease of life. Two closely related 
structures are either in test pro- 
duction or about to be, and 
there is a strong chance that 
they.- will obtain separate field 
status. This would bring in oil 
allowances that would shelter 
much of the production from 
PRT. So while output was inter- 
rupted twice in 1981, barring 
accident profits should be back 
at 1980 levels in the current year, 
and the medium term outlook is 
healthy. Meanwhile cash in the 
balance sheet has come down 
from £33m to perhaps £22m. The 
lowly rating of the shares — un- 
changed at 91p yesterday— 
reflects uncertainties about 
how tbe Hamilton empire is 
developing. 


SECOND HALF pretax profits of 
Welbeck Investment are down 
from £351,007 to £338,440. He 
taxable result for the whole of 


TAXABLE PROFITS of Ford 
main dealer Harold Perry Motors 
advanced by 9 per cent from 
£3.42m to £3L72m in 2981 on 
lower turnover of £99.Q5m. com* 


1981 dropped from £622,720 to pared with £X06.48m. 

£409,581 on turnover higher at Mr J. F.Macgregor, chairman. 


£7£2m, against £736m. 

The dividend has been lifted 
from L85p to 2p with an in- 
creased final of L25p (Lip). 

At the trading level profits fell 
from £627,906 to £441,399. As 
analysis of trading profits by 
division shows: banking services 
nil (£9BJ21S); -head office and 
financial services £ 141.216 
(£75.285); printing £95,489 
.£116,936); retailing loss £1<L291 


says action to reduce operating 
costs, a substantial reduction in 
the group’s borrowing require- 
ments, and interest earned on 
temporary cash surpluses con- 
tributed to the improved result 

The re cessio n and cut-throat 
competition his vehicle sales 
volume and profits, he says. A 
lower number of new car sales 
produced 9.4 per cent more pro- 
fit; commercial vehicle profits 
were 22 per cent less. 

Other trading activities pro- 


premises. . and • work force discounting necessary to keep 
virtually intact it is ready for hold of some fleet business and 
any upsurge in business which anyway car profits are efeead 

econom * wuU nearly a tenth. The big fillip for 

With stated earnings per 25p levelwastiie 

share rising from ll.fp to 13.4p reduction m debt Over £5J<J,0w} 
the year's dividend is ‘ being of term loans were repaid and 
raised from 3.5 p net to 3.75p interest were 

with a final of 2.25p (2p). around £400,000 while umifr 

Tax took £L3m (£LS7m) and ment income shot up from £40,000 
after extraordinary debits of to £130,000- The results were 
£166,000 (£223,000) the attrfbut- good enough to natM pnre 
able profits came out at £2J25m back up to 103p— -a high for the 
(£l.S3m). Dividends absorb eighties— where the fuuy toxed 
£676,000 (£631,000) leaving re- p/e is 10.2 and the yield 5.3 per 
tained profits of £3-58m (£L35m cent Impressively 19S2s first 
losses after 'extraordinary item quarter profit is ahead 30 per 
relating to previous years of cent. True, the comparable 


(loss £1,013); textiles £218,985 vided 65 per cent of total profit 


Edinburgh Inv. 
Trust advances 
to £3.84m 


some 4km to the west of the 
field. These wells have added 


Net revenue attributable to 
Edinburgh Investment Trust 


significantly to estimates of re- advanced from £3.4m to £3 -84m 


covers ble reserves in tbe Argyll 
area, he says. 

Daring the year, the company 
for the first time became in- 
volved in oil and gas exploration 
in tbe U.S. and Canada through 
its U.S. subsidiary taking a 
4.6 per cent interest In a 5105m 
joint venture exploration pro- 
gramme organised by its U-S. 
associates. Of the 41 exploration 
wells which were completed by 
the end of January 1932, 16 dis- 
covered oil or gas. 

The company was floated on 
the London Stock Exchange in 
July 1981. . 


iSd^tL^dWdSd ta S £230.000 (£323,000) 
raised from 1.12p net per 25p 
share to l-23p, making an in- 
creased total of 2J8p r compared 
with an adjusted L96p. 

Gross revenue was ahead at 
£8.44m (£7J24m). After divi- 
dends of £3.63m (£T26m) the 
retained surplus for the year 
emerged at £212,000 (£137.000). 

At the half year stage this in- 
vestment trust was already ahead 
with gross revenue of £L52m 
(£3-8lm) and net revenue 
attributable of £ 2 . 02 m (£L82m). 

Net assets at the year end, 
taking investments at market 
value, attributable to ordinary 
shareholders, were equivalent to 
78-9p (78.7p) per share. 


(£337,480). 

Trading profits were struck 
before increased provisions of 
£31,818 (£5,186). 

Tax took £153.395 (£151,035). 
After a credit for minorities of 
£11,561 (debit of 0^333), and 
lower extraordinary credits of 
£81,001 (£121203) stated earnings 
per lOp share were down 6.4p 
fl0.8p). Before extraordinary 
items they were given as 4.9p 
C8.7p). 

On a current cost basis the 
operating profit before tax was 


with higher contributions from 
spare parts — 34 per cent up— 
accident repairs — 17 per cent 
up— and self drive hire— more 
than doubled. 

Looking to 1982 he says group 
profits for the first quarter were 
£L12ur (£860,000) but there is 
little evidence so far that the 
year will provide substantial 
growth in demand for the pro- 
ducts and services. 

Having in the past two diffi- 
cult years been able to preserve 
the group’s organisation. 


£2.55m). 

At the half-year stage the 
group was behind with taxable 
profits of £L5Sm (£2. 12m) on 
turnover of £48.78m (£64 .34m). 

Current cost adjustments re- 
duced the pre-tax profits to 
£2.46m (£2.05rn) and earnings 
per share to 6.4p (3.8p). 

• comment 

Last year was undisputedly 
tough. A £7m slip in Pern's 
turnover bears witness to the 
sluggishness of Its new car sales 
which, it admits, were worse than 
the small setback for Ford 
overall. But Perry says it 
deliberately sidestepped toe wild 


period was depressed but this 
January and February's snow- 
storms did little to help and 
March must have been an excel- 
lent month. If there was going 
to be a slow quarter it would 
have been the first, so the year 
seems to be shaping up for 
further recovery— as indeed- it' 
should to justify the rating, one 
of the highest in the sector. 
Ford's price cuts will affect 
margins from now on hut Perry 
is not discouraged, believing it 
marks the end of hefty discount- 
ing. But others have an uneasy 
feeling that the move might 
mails the beginning of a price 
war — that could be bad news. 


CLRP rises 
to £383,362 


In the half year to February 
28 1982, CLRP Investment Trust 


comment 


The Argyll field-Mjf which 
exploration well on a structure Hamilton Oil (GB) has a 2SB per 


Continental Microwave on USM 


Continental Microwave is joining Between 1977 and 198L Con- Technical Development Capital 
the Unlisted Securities Market tinental’s pre-tax profits grew assisted three UK directors ot 
by way of a placing of 248,000 of from £47,000 to £174.000 while the group to buyout the company 
its shares at 260p, or 24 per cent sales advanced from £584,000 to from Cal ifonua Microwave, 
of Us total capital. The placing £2.1m. For the year ended June Of the 248,000 shares to be 


wanas mas «sK-«£is 


from 


revenue which rose 
£514.018 to £559,123. 

The interim dividend is being 
maintained at 1.6p net per 25p 
share and the directors forecast 
a final of not less than last year’s 
l-8p. Earnings per share are 
given higher at 1.8 p (L71p). 

Tax took £122,618 (£177,129), 


the company at £2.76m. 

The company, which was estab- 
lished in 1973, designs and manu- 
factures advanced electronic 
systems, covering the spectrum 
from vhf to the upper micro- 
wave frequencies, for tsrrestial 
and satellite communications, 
defence applications and tele- 
vision broadcasting. 


tax profits will be not less than 
£300,000. 

Tbe directors intend to pay a 
final dividend in October of 1.75p 
net For 1983 they forecast a 
full pay-out of at least 5J2Sp. 

Continental was started in 1973 
with funding from California 
Microwave, a U.S. company in the 
same tine of business. In 197S, 


ANGLOVAAL GROUP 


Mining companies' reports - Quarter ended 31 March 1982 


AB companfaementloned are Incorporated in the ReptA&c of Sooth Africa. 

AH financial figures, except those for tbe financial year and quarter ended 31 December 

1961 of Consolidated Murchison Limited, are unaudftoi 

Rate of exchange on 31 March 1982, R1 ,00 =£0,53 £1 ,00=1*1,89. 

Development results given are the actual sampling results. No allowance has been made 
-for adjustments necessary in the valuation of the corresponding ore reserves. 
Shareholders requiring copies of these reports regulariy each quarter, should write to the 
Secretaries, Anglo-Transvaal Trustees Limited, 295 Regent Street London WI R 8ST. 



Eastern T ransvaal 
Consolidated Mines, Ltd. 

Issued capital 43TB 676 shares of 50 cants each. 


Operating resufts 
Gold 

Ore milled t 


Quarter 
ended' 
31 March 
1982 


Quarter Nine months 


ended 
31 Dec. 
1981 


ended 
31 March 
1982 


Yield 


75 COO 
585D0 


78 240 
581*22 


230500 
1 745.67 


Costs 


Financial results 


Working profit - gold mining 
Non-mining loss (profit) 



7.8 

7.4 ' 

7.8 

Rtmined 

8651 

9594 

92188 

R/t milled 

4495 

4156. 

4253 

R’t mlllsd 

4156 

5453 

5055 

... ROOO 

6483 

7507 

21408 

...ROOO 

3 371 

3252 

9803 

...ROOO 

3117 

4265 

11 605 


ROOO ' 

ROOO ~ 

ROOO 



3117 ■ • 

4255 

11 60S 


130 

(389) 

(360) 


Prospecting rogjondture . 


2987 

295 


11965 

703 


Profit before taxation 
Taxation 


2692 
1 529 


11262 
. 5 927 


Profit alter taotion 


1163 


2255 


5335 


Capital expenditure 
Dividends 


869 


511 

2590 


1 577 
2590 


3,101. 


4167 


Development 

Advanced 


,m 


2076 


2160 


6444 


Sampling results: 

Sampled m 

Channel width cm 

Channel value 

cro^t 


1416 
207 
75 - 
1546 


1342 

196 

73 

1425 


4308 

198 

7J0 

1394 


Dividend 

Interim dividend No. 63 of 60 cents per share, declared in December 1931, was paid 
in January 1962. 


Taxation 

Taxation for the vear to dare has been calculated at the new rates announced by the 
Honourable the Minister of finance in his budget speech. The charge for the current 
quarter indudes additional taxation attributable to the previous quarters. 


Capital expenditure 

Outstanding commitments at 31 March 1932. are estimated at R2.283 OOO 
(31 December 1981: R197 000). 


Consolidated Murchison Ltd. 

Issued capital 4 1 6Q 000 shares oMOccnts each. 


Operating results 


Antimony co n ce n tra t e s plus cobbed 
orBproduwd 


ore sold 


Financial results 

Sates of antimony eoncermates less 

realisation charges 

Gold sales 

Sundry mining income ...» 


Working costs 


Working toes (profit) 
Notwnininfl incoma . 


prospecting axpendftuiB 3lKf 
stores adjustment - 


Loss (profit) before taxation 
Taxation 


Loss (profit) after taxation '. 


Capital expenditure 

Dividends 



Quarter 

ended 

31 March 
1982. 

Quarter - 
ended 

31 Dec. 
1981 

Financial 
iroer 
ended 
31 Dee. 
1981 

-t 

109200- 

105400 

386950 


' 4403 

4387 

16589 

i % 

.-t 

.kg 

2704 

130 

- . 5646 - 
131 

. 16212. 
547 


ROOO 

ROOO - 

•: ROOO 


-2537 

1395 

■24 

5700 

ieaz 

n 

15587 

7489 

105 


■ ‘3956 
4707 

7393 

4558 

23180 

17022 

... 

751 

87 

(2835) 

160 

(6158) 

510 


664 

m 

* (6668) 

■ - _ 

77 

' 202 

. 710 

... 

741 

(2793) 

928 

(5858! 

1313 

... 

^741 

' (ia^) 

(4646) 

... 

-SQ6 

4S3 

2496 

1281 

2496 


' 506' 

’ 2949 

3777 


Fftwnriaf . 

Tbe revenue from the sals of antimony concentrates brough t- Into a aoun t esen 
quarters based on actual Shipments mad* which can vsnrcoiBiderablyirren quaiw 
toquarter. Because of poor demand and in order to remain compantiyo, the price or 
concentrates has been reduced. 


Dividend ... 

final dividend No. 70 of 60 cents per share, declared in December 1981, was paid w 
January 1982. 


Capital experuEture , _ 

Outstanding commilntflnts at 31 March 1982 are estimated at R3270C0 
(31 □eCEmfaer133I:R34700GA. 


Hartebeestfontein 
Gold Mining Co. Ltd. 


issued capital 11 200 000 shares of R1 each. 


Operating results 
Gold 

Ore miflsd t 


Quarter 
ended 
31 March 
1982 


Quarter Nine months 


ended 
31 Dec. 
•, 1981 


ended 
31 March 
1982 


607000 759000 


■Gold recovered . 


724830 

. 7 513.40 

Yield 


10.4 

93 

Revenue 


118,15 

13051 

Costs 


60/37 

. 5623 

Profit 


58 X® 

74,38 

Revenue 


82 350 

99131 

Costs 


41866 

42 679 

Profit 


40484 

56452 

Uranium oxide 

Pulp treated ... 


697000 

759 000 

Oxide produced , 


108 60T 

10S387 

Yield 


0,15 

0.14 


2206000 
22394.17 
102 
126 29 
57.82 
68.47 
278595 
127 556 
151039 


2206000 

323070 

0,15 


financial resists 

Working profit -gold mining .... 
Profit from sales of uraraitn ends, 

pyjftc and sulphuric Sdd 

Non-mining income . 


ROOD 

40484 


MOO 

56452 


ROOO 

151039 


6568 

3988 


.535 

3294 


10871 

11305 


Interest paid 

Net royalty payment 


50036 

295 

1QZ 


60281 

298 

I33J 


173215 

864 

•1358) 


Profit before taxation and State's 
rime of profit .................. 

Taxation and Stato'sshare of profit . . . 


49639 
37 641 


6 0016 
31959 


172 709 
105 094 


Profit after taxation and State's 
share of proffr — 


11938 


28057 


67 615 


Capital oqaendituro 
Loan repayments .. 
Dividends ....... 


6195 

23 



15445 
84 
42 000- 


6218 


48071 


57529 


nt 


Development 

Advanced 

Sampling results on Vaal reef: 

Sampled m 

Channel width cm 

Channel value -gold gt 

...cm.gt 

- uranium Mode . . ,k®t 
cmJ'pt 


70472 


73705 


38439 


2292 
50 
32.5 
1 620 
051 
25,46 


1704 

49 

263 

1295 

0.47 

23,08 


6104 

50 

293 

1464 

0.49 

24,40 


Production 

During the quarter an electrical breakdown occurred which effected hoisting 


operations. This resulted in a drop in plant throughput Arrangements were made to 

ted level and losses Incurred wffl be partly 


maintain gcM production at about tbe planned 
-covered by the Company's insurers. 


Dividend 

Fntemn dmefend iYa 52 of 375 cents per share, dedaed ih December 1981, was paid 
in January 1982. 


Taxation 

Taxation for tbe year to date has. been calculated st the new rates announced by the 
Honourable the Minister of Finance In his budget speech. The charge for the quanar 
includes additional taxation mtrliutabla to the previous quarters. 


Capital expenditure 

Outstanding commitments at 31 March 1982 are estimated at R3Q335000 
(3 1 December 1981; R26 899 OOO). 


Prieska Copper Mines 
(Proprietary) Limited 

Issued capital 54 000 000 shares of 50 cants each 


Operating results 


Quarter 

ended 

31 March 
1982 

678000 

' Quarter 
ended 
31 Dee. 

. 1981 

vmmn 

Nina months 

ended 
31 March 
1982 

2034000 

Concentrates produced 


24447 

24211 

70732 



31 814 

3750! 

104634 

Concentrates despatched 

Capper 

Zinc 


22980 

38143 

25144 

.32817 

84367 

102414 

Financial restrits 

Operating profit (toss) . . 
Non-mining Income 


' ROOO . 
1023 
201 

ROOO 

.(440) 

108 

ROOO 

2229 

468 

Interest paid 


1224 

63 

(332) 

108 

2B88 

266 

Nat profit (toss) ......... 

■ 

1101 

(440) 

2432 



- 

1279 

1279 

Capital expenditure 


1227 

949. 

2854 



1227 

2228 

4133 

Development 

Advanced 


5557 

5574 

17730 


Prieska Copper Mines (Proprietary) limited (continued/ 


financial 

Despatches, which vary from quarter to quarter, are brought to account at their 
e stimat ed receivable value. Operating profit takes into account adjustments following 
final price determinations on despatches made during previous quarters^ 


Taxation 

No tacation was payable as the Company has an assessed loss. 


Capital ixpandhiin) 

Outstanding co mmitm ents at 31 March 1982 are estimated at R679 D00 
(31 December 1981 : R994 OOO). 


Loraine Gold Mines, Ltd. 

Issued capitan 6 366 98B Glares of A1 each. 


Operating results 
Gold 


Gold recovered .... 

Yield 

Revenue 

Costs 

loss (profit! IVt trifled 

Revenue ROOO 

Costs ROOO 

Loss (profit) ROOO 



Charter 

Quarter 

Six months 


ended- 

ended 

end8d 


31 March 

31 Doc. 

31 March 


1982 

.1981 

1982 


392 000 

• 410000 

- 802000 


1796.15 

1350.10 

364825 


43 

■45 

43 

. Rt milled 

52M 

59,15 

5537 

. R/t mated 

5537 

54.65 

55.15 


323 
20555 
21 821 
1266 


(4JB0 

24255 

22408 

11847) 


( 0 . 72) 
448t0 
44229 
(581) 


Financial results 

Working Iocs (profit) -gold mining . . . 
Loss on sale of uranium oxide 

and pyrite 

Non-mining income 

Stater ' 


ROOO 

1266 


ROOO 

(1847) 


ROOD 

(581) 


31 
2335 
2 433 


650 

534 


31 

2985 

2987 


Interest paid, stares Bdftistmenc 

and service benefits 

Touting royalty payable ..... 


3471 


3031 


6602 


379 

80 


380 

125 


Profit 


3012 


2526 


5538 


Capital expenditure 
Loans received ... 


6410 

579 


5695 

1974 


12105 

2553 


loan repayments . 


5 831 
21 


3721 

34 


9 552 
55 


5852 


3755 


9607 


Development 


Advanced 


7296 

6464 

13750 

Sampling resists: 
”B" and ~A“ reefs 
Sampled .... 


156 

68 

224 

Channel width .... 


, 51 

10 

39 

Channel value .... 

eft 

53 ■ 

43j0 

8.7 

.... 


298 

430 

337 

Basel reef . 
Sampled ......... 


-420' 

456 

878 

Charnel vwdtft .... 


8 

S 

8 

Channel value 


S3 

843 

722 



484 

679 

585 

.Habwg. reefs 
Sampled 


414 

228 

642 

Channeiwktm .... 


106 

138 

118 

Channel value 


13.6 

' 

9.7 



1450 

673 

1 139 

I - Tola! -all reefs • 

Sampled 


990 

752 

1742 

Channel width .... 


56 

48 

52 

Charnel value .... 


.153 

13.1 

14.4 

.... 


858 

624 

757 


Taxation 

No taxation or State's share of profit was payable as the Company has an assessed 


Capital expenditure 

Outstanding commitments at 31 March 1982 are estimated at R19038000 
(31 December 1 961 : R25 903 000). 


Shaft sinking - 

No. 1C Sub-vortical shaft was sunk 90.5 metres to a depth of 1265 metres below 52 
(aval and concrete-fined to a depth of 112£ metres. The station bn 54 level was 
excavated and concrate-finsd. 


State Assistance 

State Assistance as shown tn the tabulation of finana'af results 'a based on mining 
revenue and working costa only as the Government Mining Cn gine o r has not yet 
determined which items of capital -ooenditurB already incurred ami to be Incurred in 
the current financial year wW be allowable as costs in terms of the Gdd Mines 
Assistance Act of 1988. 


Non-mining Income - Gold hedging 

Tho proceeds of certain gold hedging transactions conducted during tbe'quarter we 
Included in non-mining Income - as wj be the case In respect of the finandal results 
Of any future hedging transactions. Non-mining income for the quffler b not 
necessarily representative end wftr vary from quarter to quarter. 


These reports have been appraved by the dJfcctorsrf the rapective companies and In 
each case hove bean signed on their behalf by dk> aftfw dtrectoa. 


TOC, 56,000 by three directors 
and the balance represents new 
shares issued. The TDC will hold 
20.6 per cent of the shares after 
the issue while the directors will 
hold approximately 4& per cent 

Tbe proceeds of the placing 
will be used to fund further 
expansion. 

Stock Beech, stockbrokers, are 
sponsoring tbe share placing. 
Dealings on the USM are expec- 
ted to begin on April 28. . 


• comment ' 

Continental is a tiny company in 
a fairly fashionable, expanding 
business. The group says it can 
burrow into niches which the 
giants, like GEC, Plessey and 
Ferranti, have so far ignored. 
The European communications 
business, however, is riddled with 
regulatory minefields which mean 
that American-style growth is 
still some way off. Still, the 
group’s customers are well split 
between the defence, telecom- 
munications and broadcast 
markets. Some of its equipment 
is apparently steaming south' with 
the armada at this moment. This 
' naval manoeuvre, however, is no 
doubt why -Continental is being 
introduced on a full- taxed pro- 
spective p/e of less than 20; .The 
prospective yield of nearly 3 pet* 
cent represents a slight premium 
to tbe secldr. — • 



START TO 
SECOND 


HUNDRi 




if 




.if 

'£ ' 


% 

Y. 




*New 

-Premium^ 

UDtiyltfj. 

•NewSKgfe m 
Premiums . ;?4 
up by 75* 


* Protected OCTrth ? 

Declared fete ■-»* 

uptoia* -" 2 Si 


• TemnlnalBonus”’' 


increased 


rites 

F 


•Assets now&cceeiE; 

NEWDEVElOpMEjf^ 
•RrstAhmial i 



*MORTGA< 
flexible 


-at.: 

purchase packaged 

* SOVEREIGN 
pension plan 
based on protected 
Growth 


♦Estal 

special faQIltfes for 
funds from banks 
and bunding 


llr 


INVESTMENT 

*£ 60 mofnew 
money invested- ’ 

- 32%lntogltts»- :.«T 
49 % in property 
40%)n eouit^ * 

. 9% In cash, t 


r:-< r 


i'-- 


t 


P . 

low*- 


( "■ 


BASE LENDING RATES 


Arbuthnot Latham ... 13 % 
Associates Cap. Corp. 13 % 

Banco de Bilbao 13 % 

BCCI IS % 

Bank Hapoaiim BM ... 13 % 
Bank.Leuxm (UK) pic 13 % 

Bank of Cyprus 23 % 

Bank Street Sec. Ltd. 14 % 
Bank of N.S.W. ......... 13 % 

Basque Beige Ltd. ... 13 % 
Banque du Rhone et de 

la Tamise SA. 13J% 

Barclays Bank 13 % 

Beneficial Trust Lid . ... 14 % 
Bremar Holdings- Ltd. 14 % 
Brit Bank of Mid. East 13 % 

■ Brown Shipley .'. 13 % 

Canada Perm’l Trust... 

Castle Court Trust Ltd. 131% 
Cavendish G’ly T'stLtd. 15 

Cayzer Ltd; 13 % 

Cedar Holdings 13 % 

■ Charterhouse Japhct... 13 % 

Chouiartons 131% 

Citibank Savings 312|% 

Clydesdale Bank 13 % 

c; E. .Coates 14 % 

Consolidated Credits... 13 % 

Co-operative Bank *13 % 

Corinthian Secs. -13 % 
The Cyprus Popular Bk. 13 % 

Duncan Lawrie : 23 % 

Eagil Trust 13 % 

. E.T. Trust 13 % 

Exeter Trust Ltd,-*...:.. 14- 



AJB.N. Bank .........i./'lS % - - Grin dl ays Bank — JW % 

Allied Irish Bank 13 % ■ Guinness Mahon ...... 

American Express Bk. 13 % ■ Hambros Bank' i, n % 

Amro Bank : 13 Heritable A "Gen.-Tnat il % 

Henry Ansbacher 13% ■ Hill Samuel 


C. Hoare Ss Co. 

Hongkozig & Shanghai lS % 
Kingsaorth Trust Ltd. 14 
Knowsley & Co; Ltd.,...- IS 

Lloyds Bank • 33, 

Uallinhali Limited ...' 13' 
Edward Manson 3c Co. 24 % 

Midland Bank 13 % 

Samuel ‘Mchtagu -13) ft 
Morgan Grenfell ;...- 13 
National 'Westminster IS 


Norwich General Trust IS % 
>. ...... 13'% 


P. S. Refson & Co 

Roxburghe -Guarantee'.13f% 

Eu S_ Schwab 13% 

Siavenburg’s- Bank I3’% 

Standard Cbuterad"-.'.J^% 
Trade Dev. . Bank 
Trustee Savings Bank I3‘% 
TCB Lid. ........... ...,..,-13, ft 

United Bank of Kuwait 13 % 
Whiteaway Laidlaw... 
Williams & Glyn's IS- % 

Wintrast Secs. Ltd. ... 13% 
Yorkshire Bank W % 


■ Ucmburs ol ilia Accepting Hoorn 
Commmss. ' 

■ T-day - dapomM- -10%,- 

1025%. - Short, form ;£AfiW/lZ 
month 12.6%_ . . \ ■ 

t 7-doy dQposira on aon*.,ol:‘uml«r 
£10,000 10*,%,. £10.000 - up JO 
130,000 11%.: £50,000 end: ***’ 
' • - - 

4:Cail dopos({s-.<1,-000 and ever 
10%. • . : -.'7 ■ 

ft 21-day d«pt»ail*w*i £1X0011^%- 


First Nat. Fid. Corp.... 154? .. .. . 

First Nat. -Sees. Ltd^... .154%- -^ Demand deposits 10 ^%. 
Kobert Fraiser 14 Mortgage base -raw..' 


fectsfrcT.r/, 
! teh3!d;:r 
htoW-s • 
ilJSal- • 




'-I . 






M. J. H. Nightingale & Co. Limited 

27/28 Lovat Lane London EC3R~8EB ^ ' fclcphonv 01-621^? 


1381-82 - ' 

High Low Company 

130 100 AA9 .Srit. lnd CULS. 
75 62 Aireorung 

51 33 Armlugc & Rhodes.. 

205 187 Barton Hill 

107 100 CCl 11 pc Conv, Ptet. 


-Gross VleW^ .-.--Fall*.. 
Pnee Change dnMft* % Actus! U»W 


129 

73 

44 

193 

107 


+ 1 . 


+ f 

+. 1 


.W.0-.7-. 7.8— — .... 

4.7 . B.4- in. iso 

4.3 •■9,8- 1 3-7- 
. 9.7. ,4.9 .9.7 J1-8 



104 

61 

Deborah Sorwices .. .. 

rc? . 

_ 

^oJa.7 

1S1 

37 

Frank Horsed 

1?7 

+ 1 

6i4. 1 ff.o 

S3 

39 

Frederick Parker 

7Ti 

.+ 1 

&« 8.5 

78 

46 

George Blair 

54 



102 

S3 

Ind. Precision Castings 

96 


- 7.3 . .73 

109 

too 

tala Conv. Pret 

W0 

■ 

15.7 H.b 

113 

84 

Jackson Group 

97 

+ .1 

7.0 . ‘ . 7!2 

<30 

tm 

James Bumiuph .... . 

tts 

— 

at - T.7 


ir • BA 

'11-4 .23 5 
3.8 - 71 




3.1 

82 


8.9 

}0*- 


334 

240 

Robert Jenkins- 

240 


31.3 -13.0 ' -3-3 5. 

64 

51 

Scrotum "A** 

. 64 

— ' 

5.3 8.3 •_ M 9 J 

222 

159 

Torday & Carlisle .. . 

1W 


10.7 6,7 S.1 , 

16 

10 

Twmloek Ord 

‘13*, 


a— ' ' . * — ' ‘ 

80 

66 

Twirtloek T5pe ULS. — 

80 


.15.0 133 . ~ 

M 

« 

Unilock HelcUnga .... . 

a 


3.0 12.0 45 J? 

103 

33 

Walter Alexander .. .. 

79 



• M 52 . 92 

263 

212 

W. S. Yearn- 

231 

+ 1 

14.5 6-3 40 -12,1 


Prices now available on Presto! page 48148, f 


THE TRING HALL 
USM INDEX 
117.6 < +<U) 


Close of business 20/4/S2 
BASE DATE 10/11/80 100 
Tel: 01-638 1691 




ladbro^ind^ 

• Qose S56i&*:&3)';. 


\ . 




" r T?T5XTO" , r 









.".it A.’ 




mancial Times Wednesday April 21 1982 

wapauies 

Sfd Markets mining news 


~:2 S 


Turnround for Angloyaal metal producers 


“i . WUJJNG-STANLHY 

■^ COMPLETE turnround in 
iJSS?** the base metal 

iSSSl? 1 ** '£ thia South 

iJSS? ^l** 1 sroup has 

■1S!Li!! n *, ****,. ,Lliree months to 
-jMarch 31, while the copper and 

^nc-producing PrieSka te*s 
.sowed hack into the black. 

^Tfce main reason for Prieska's 
apturn to profit was a change in 
■^ne nnx of concentrates shipped 
1“?^ the mine, with a greater 
^eufpnasls on 2 inc. The rise in 
-deliveries of zinc concentrates 
. came m spite of a fall in pro- 
, auction of the metal, while 
i cower concentrate output was 
•higher as a consequence of 
better head grades. 

The total tonnage of ore 
milled decreased by 5 per cent 
to 678,000 tonnes, which pro- 
luced 24,447 tonnes of copper 
oncentrate against 24,211 tonnes, 
nd 31,814 tonnes of zinc con- 
-entrates compared with 37,501 
tonnes. 

The amount oE zinc concen- 
rates shipped rose to 38.143 
mnes, some 16 per cent higher, 
mJe s hipments of copper con- 
'otrates fell 10 per cent to 
360 tonnes. 

^onso+ktated Murchison’s anti- 
ny otrtpbt was slightly higher 
ng to better head grades, but 
es fell by more than half to 
.i04 tonnes, realising R2.54m 
•f£1.36m) against R5.7m in tlie 
December quarter. 

- The weakness of the antimony 
-market has meant ti>at Murchi- 
son’s by-product gold output is 
assuming an increasing import- 
• ance, and the company has 


decided to publish details of its. 
gold production for tbe first time. 
Output for tbe most -recent 
quarter was 130 kilogrammes, 
broadly in line with that for the. 
previous period. 

Among the group’s gold mines, 
Loraine went directly counter to 
the current trend in the indus- 
try, with a 19 per cent increase 
in net profits after tbe inclusion 
of non-mining income. 

Loraine, a marginal operation, 
lost RlJ7m on its gold mining 
operations, compared with a 
profit in tbe previous quarter 
of R1.85m. But K2.43m in state 
assistance, plus R2-34m from non- 
mining income against lust 
R650.000 last time, gave the 
mine net profits of R3.01ra 
against R2.53m in the December 
quarter. 

The breakdown of non-mining 
income is not disclosed, but it 
is known to include the results 
of trial hedging transactions on 
gold futures markets concluded 
during the first three months of 
tbe year. 

Loraine paid no tax, so that 
it was not affected by the recent 
increase from 5 to 15 per cent in 
the tax surcharge on South. 
Africa's gold mines. 

Hartebcest was not so for- 
tunate. and its tax charge rose 
sharply following the group's 
decision to deduct the whole of 
the increased tax charge in the 
current quarter. 

The higher surcharge is retro- 
spective to the beginning of a 
mine's financial year, so that the 
tax figure in the current quar- 
terly results reflects the higher 


level right back to July 1 last 
year. 

Mar Dec 5 opt 

qtr. qtr. qtr. 

R0» ROW - RflOO 
Jianebei»tfennui 11,998 28.C37 77.560 

Uraire -3.012 *2.526 *2.43* 

Cried . Murchison t 741 1.865 l.llft 

Pries ka 1.161 *440 1.711 

East Transvaa* ... 1,163 2.255 1317 

Village Main t42 ’ 2SS 348 


t Lose, 
assistance. 


-After receipt 


Mr George Nisbet, chairman 
of Bandfonteln Estates and 
Western Areas, the other two 
mines to produce quarterly 
reports yesterday, conceded that 
the mines were lucky to be 
accounting on a calendar-year 
basis. 

This means that both com- 
panies, members of the 
Johannesburg Consolidated In- 
vestment group, are only liable 
for the higher tax rate in 
respect of the most recent three 
months. 

With m3] throughput, gold 
grade, working costs and gold 
output all broadly unchanged, 
the lower gold price received 
was tbe only factor with any 
material effect on tbe profits of 
ffandfontetn. 

The mine received an average 
of S363 per ounce compared with 
S426. or in rand terms R11.519 
per kilogramme against R13.107. 
This decline, plus of course the 
higher tax charge, resulted in a 
fail of 41 per cent is net profits. 

Randfontein managed to main- 
tain the grade of its ore at 
5 grammes of gold per tonne in 
spite of the fact that a higher 
percentage of low-grade material 
from surface tailings and jock 
dumps was treated. This suggests 


that underground production 
must have come from higher- 
grade zones. 

The group's marginal Western 
Areas operation posted a net loss, ■ 
compared .with a profit lust time, . 
following declines in mill 
throughput, gold price, and gold 
production, and a steep rise in 
working costs- 

Mr Nisbet . pointed out that 
•the reduction in the amount of 
ore milled was largely attribut- 
able to a number of power 
failures. Western Areas lies in. 
a district which is particularly 
subject to electrical storms, 
which frequently cause a loss of' 
power. 

In addition, there was a break- 
1 down at a big compressor serving 
the mine's south-shaft. Through- 
put was also affected by the 
commissioning of a screening 
plant designed to improve tbe 
grade of tbe mill feed. 

Mr Nisbet admitted that this 
was a critical time -far Western 
Areas, and consequently the 
mine has revised Its minin g plan 
with a view to raising the grade 
of ore treated. This means con- 
centrating development work on 
the higher-grade Venzersdorp 
Contact and Upper Elsburg 
reefs. 

He. went on to say that Western 
Areas is considering every possi- 
bility for improving its position, 
including even an application -for 
state aid. He denied that the 
mine had already applied and 
been turned down. 

Mar Dk Sept 
qH qw. gu 

t • . ' ROTO ROOT ROM 

Randfontein 29310 50.867. 31,997 

Waitem-Arow ... tlfiW 13.037 13.713 
t Lost. 


company news Disputes cut 


Tho mas Tilling on X . 

" ./ ■ ' . ' Overseas Containers Ltd ( OCL).' ^further efforts to cut «*». sod 

n J 1 . the major UK shipping con*" "fl», switching and charteM* of 

sound tounaation <k * 

• ~ ■' -,4 llK -W 1 * 3 - *X3»ugh pleased OCL had 

THE FINANCIAL strength, wide " A statement of source 5®* -m 3?- “as much as £28m its 

ranging markets and operating application of toads' shows- that trade recession. " ' ' .■ difficult circumstances.” Sir 

^e ’pi^W^rellid from Ronald said profit? did no! 
wde a sound foundation or which generated in'iB8l .The- purchase .^a&n’ tcijS-lmfetlfa financial .provide an adequate return TO 
to continue to plan- profitable -of fixed - assets involved £5L7m year to November 30 198L on "capital employed.' 
growth, tor the group, says’ Su-. f£568m> but there waT&Uy a Sfr Hot £ To . ^ drawn 

Robert. Taylor, the chairinau, in' ' small increase of £5Stf (£ 3 Bm . ™ wot j Current co« accounts, drawn 

his annual statement ■■■ - . decreaseV- in' irorkff .cawtS * “Jr®- . ' . . : - VPUrr the fim time, showed a 

Sf a'?°rSa. aBHcon -“. V 

■ Sum • «ua in 

18-Bp (21.5p) hat tile dividend to/.mAn) C0& of an£ftlAS3 d to be ^2** £ ***"??? * 

?SfiSr Of 450 ^ - V,rith • -*H*er' to 1982, .edffimenredSir,' • Thisyear is expected to be one 

.Ronald-' Swawie;. thg outgoing <if consofidation, .wilJ^ OCL aim- 
Higher results arose entirely. -Hainan. - : Competition : would ing to complete the introduction 

from nverseas operations, parti: ^s finapert & issues^ of remain fferce.-bot OCL would of the ' new trades and 
cularly m the U.S, : Although m connectiou benefitfTOm a .full jearisfurt benefit from increased size of 

increased profits were earned Witii asqmfltions. ' savings ' on '• seven re-eagined operations. . 

op®raticms, high At the year end, the group held vessels mid an increased rantri- ‘ OCL'« services bow rover most 
1 merest costs ana Tilcons acqu> . investments of £lX23m (£92JLm) bution from new shipping Trades, of the Western wdHd. apart from 
s^on of loss making quames rn which serve to offset tbe-foreign • OCL fs jointly owned by- the Americas. The new trader 
the j U^. resulted m initial over- currency borrowed on g-medium peninsular and OrieiUgl Keam* comprised: Europe to. Arabian/ 




r i . • . 

Cominco plunges into losses of C$ 15m 


ANOTHER WORLD mining 
major has gone into the red. 
Canada's Cominco reports a loss 
r of C$1 5m f£6.9m) for the first 
quarter of 19S2 on sales *>£ 
:CS“65-3m. This compares with 
a net profit of CS16.2m in tbe 
.first quarter of last year and the 
-total net profit for 1981 of 
'CS70.3m. 

• Cominco. which is controlled 
•by the Canadian Pacific group 


with an interest of S3.6 per cent, 
says that tbe past quarter's loss 
reflects depressed prices for lead, 
copper, silver, gold and potash 
coupled with higher operating 
costs. 

The company, which is also a 
leading producer of sine, 
incurred a first quarter operating 
kiss at its mining and metals 
division of C819m compared with 
a profit of C$20.7m a rear ago. 


The chemical and fertiliser 
division saw profits fa If to C$6.8m 
from C$16.3m in the first quarter 
of 19S1. 

Because of the current reces- 
sion Cominco in implementing 
several cost control programmes, 
including temporary plant 
closures to control stock levels. 
Capital projects are bring care- 
fully monitored and where prac- 


ticable are being postponed. ■ 
Recently reporting mine 
closures. Cominco said that it 
would maintain supplies -to 
customers from metal and 
fertiliser stockpiles. It also said 
that the copper price was “of 
concern" is tbe. company’s con- 
sideration of the big, but low 
grade. Valley copper; prospect in 
the Highland Valley district - of 
British Columbia. 


Down-to-earth valuation of Ashton diamonds 


;1N THE face of persisting talk 
! Down -Under that the diamonds 
; contained at the huge Ashton 
Joint Venture lAJV) discovery 
in Western Australia are of 
better quality than has been 
■generally realised, comes a latest 
.'down to earth valuation from the 
££V. 

: -The venture's valuer has 
assessed a total of 32,000 carats 
•from the northern and southern 
.sections of the AK-1 pipe at a 
' reduced average value of only 
TTSS7 per carat. This valuation 


takes into account the rurrently 
depressed conditions in tbe world 
diamond market and the fact that 
the bulk of the diamonds are 
industrial, rather than gem, 
grade. 

Such valuations are made to 
order to assist feasibility studies 
nr the proposed mining opera- 
tion. Actual prices realised will, 
of course, reflect market con- 
ditions at tbe time of sales. Even 
so, tbe latest valuation is the 
lowest reported so far. 

Another valuation carried out 


last quarter by De Beers’ Central 
Selling Organisation (CSO) 
covered a mixed sample of 19,000 
carats from the southern part of 
AK-1 and gave a better average 
value of $7 .82 per carat The 
higher value reflects an increased 
proportion of larger stones in tbe 
sample. 

Previous valuations of AK-1 
diamonds have ranged to over 
$20 per carat but in February 
this year CRA. the AJV con- 
sortium leader refuted assertions 


that tbe values reported by the 
venture were too low. 

It gave an average value of 
stones from the southern 
section of AK-1 (where mining 
is' to start) of S11.73 per carat 
which, it claimes,- was supported 
by assessments from seven out 
of eight independent valuations. 

Even so. the venture is set to 
become . tbe world's biggest 
diamond producer in due course 
and has easily the highest con- 
centration of diamonds. 


the U^. resulted in initial over- currency borrowed on a’medlum 
all losses from interests acquired term basis to -finance U3, acqui- 
m the year. . However, tbe sitidns. The bulk of invest- 

q uames a re expected to produce meats — £103.1 m (£84.7m) 

satisfactory profits . and returns related to UK Government and 


. from now on. 


Local Authority negotiabto bonds 


Since the year end, total, expen- - and -stocks,' vrifced-at-eosc 


ship with 47.4 ’per cent of the- . Iranian Gulf and Far East to the 
shares, -Ocean --Transport and same destination' (Introduced 
Trading with 318 per cent, and December T9801: Eurooe'/EaM 
British '-and Commonwealth Africa (April lSSlj. and Europe/ 
Shipping with 1SB per eent- .India and Australia/New Zea- 


diture by the group on acquisi- 
tions. has reached £42- 7m. Total 
net assets acquired were-£28-7m 
and combtoed profits before tax 
in their last, .accounts prior to 
acquisition were some £9.9m- 


The rettirn- on average. funds 
.employed .fall from 16.8 per cent 
to 15.5 per cfenL Net borrowings 
rose by £64m to £221.6m. 

Meeting, " irt- Floor,. Centre 
Point, WC, Kay 14, at noon. 


Silvermines jumps 83% 


A RISE of more' than 83 per cent 
from L£1.8m to L£3.3m is 


from £L15m to fLllm.. 


--■Sir: Ronald said in . the - annual • Tand /Gulf' ( N ovemher 1981 j. 
report . that the ' Sispme at a settling of the Gulf war 
Southampton ^ continued . until would much im p rov e the results 
mid-February 1982. costing OCL of OCLV three trades inlo toe 
a further £l-5ni. There had been area, it said. Apart from this. 

. industrial unrest at Ttibury as “ We cannot count on any 

well. improvement in world trade over 

- “We have also suffered- from the next two to three years: we 
a 1 disastrous increase in the do not anticipate a reduction in 
number and length, of Industrial the level of competition, nor any 
.disputes affecting . Australian significant alleviation in the 
ports.” These were hwreaSBOgly ' present world reeesion." 




reported ^ Tax . took £719,231 (£967^06).. -disruptive towards the mid Bf” Profit increases would come 

The final diridendfc hSiT There -Was a transfer from, capital 1383 and continued into 1982. Tiotn eff.ciency.’ better use nf 
at 2 d which brinv^rlSp intal to ■ J ' CT * nuesli st tSmfi of ■" -OCL was helped last'year by assets and- lower costs. **We 

85 n tint ™ on T gs me 10111 t0 retaingd-proats surged to - the relative weakness of-starling -' anticipate uttspectacolar though 

TTic dlrtiflors sav theV have-^. i&Q 2S7) - \ ****&& .tte:ehdjof-tfy iyrtoa^ steady savings.^ - • /; 

continued their policy of invest-' * ’■ 1 - ' " ‘ Li ^ JJ - 

lng 'in new ventures and natural 
resources, but add that- there has : 
been a swifeh of emphasis to 
energy production • and -high 
technology. • •• ' • - ’ ** 

During - 1981, : 'Hie 'group . 
acquired a 24.7 per- cent- interest : 
in the overriding royalty; an the 
Kinsale head gas field in Ireland. . 

Oil and gas royalty entitlements - 
were bought . -on . prospective ‘ 
acreage in - the ; U.S: - and - 
Australia.- • . . 

Th®. directors report Jliat there : 
was continued strong trading by 
Anglian Windows, which they 
say is now the largest supplier 
of -replacement- -windows and 
doors in the UK. The contribu- 
tion from -Anglian fell slightly to 
£1.13m (£1.3Sm).. . 

The group sold half its holding 
m Arah : Energy, realising a 
capital profit of £2.05m. There 
was a substantial increase in 
royalty income from Magcobar 
which the directors $a~ Y helped 
the increase in operating profits - ' 
from £385,454 to £378^64. 

There was a satisfactory initial 
trading period tor Irish Cold 
Stores. 

Net investment portfolio profits 
.rose . from £284,043 to . £LS4m. 

The share of associate profits fell 


Pre^tex-^r^t-^&p l ..~rup48% 

* Turnover for 1 981:~£52.8 million up 17% 

* Earnings per shar?; 1 6.7p up 45 % 

* Catalin Umited. acquired irvAugust. 1.381 


Kuberc )id| 


RuberoB pfc . 

1 New Oxford Street, London. %ciaipe 

Th*. bu Wins product, ape&atdt coniraeling. twin pipe' mi 5^). 

C<Mf of rf>e tttponm^Aciour.'s r* i,rU« i-e Sact’af. 


. Extracts from Mr. Arnold Lorbeer's Statement to 
the Shareholders and the 1981 Annual Report 

Ybu will see from our Annual Reportthatwe did 
■well in 1981 Our sales revenue of £1,392,500,000, 
■cash flow of £136,400,000, before tax profit of 
* £180,200,000 and net profit of £90,700,000 
.were records for the Ultramar Group. We were able 
:.to achieve these results in the face of a world over- 
-production of crude oil which has caused profit 
■imargins to weaken and an economic recession 
which has reduced the demand for 
; "refined petroleum products ' V 
; 3 he major markets^^-----^^’ \ 


L'M 









i ’ ■v , 1 * *. 


. 1 . .% 


h ' itW • 






On the basis of these results, your Board is 
recommending a final dividend of 8 p per share. 


Our financial position js strong and We ha ve 
again improvedour networking capital. We have 


bringing total dividends paid out of 1981 profits to also been able to continue, and even accelerate 


13p pershare.The 1981 dividend, together with 
the relevant Advance Corporation Tax, comes to 
£ 20 , 000 , 000 . 

After three years of excellent growth, during 
which net return on average invested capital has 


our capital expenditure programme. All thesigns 
■pointtb 1984 aS the year iri which we will double 


• have a new source of North Sea crude oil and be 


averaged over 25 per cent, it appears that 1982. , operating a modem fleet of medium sized ■ 

will be a year of consolidation. Indonesian income oil-bulk-ore carriers. . . ; ’ 


is expected to be steady, but Eastern Canadian 
refining and marketing profits will be adversely 
affected by lower profit margins. The California 
division will benefitfrom the acquisition of 
Beacon Oil Company Shipping rates are 
still low and the level of profitability of the 17 . ^ 
marine division is dependent upon the | ’ -3g 

availability of business in the US \ ^ 

preferential trade. Canadian arid North Seal || 
production, UK marketing and Caribbean V ■ 
operations should be profitable but will 1 * 

probably not be big -J S 

; factors. / . . f 

t o J A 1 


Our most important asset is the people who 
work for UltramarTheir dedication and talents are. 
responsible forthe continued good results of the 
Ultramar Group. - ’ 


^ummansea finan 

- -£ 

ma 


ps 


Sales . I ’.;. 3,3925 ... 939.5 

■ 

0 

0 

vi 

5953. 

’472.7 

Cash flow from • 

operations - . 

336.4 - 10Q.5 

863 

31.6 

26.7 

Operating profit - 
before taxation 

180:2 126.3 

75.4 

37.7 . 

24.7 

Taxatiorron 
, operating profit 

87:6l 52 £ 

303. 

23.6 

105 

Operating profit., 
after taxation 

92.6 73.5 

453 

14.1 : 

: 142 

Foreign exchange , 
.fluctuations 

{3-9} 0.6 

1.5 

(5.5) 

.-(53] 

Net profit 

. 90i7 : ’ . 74.1- 

463 

8.6 

8.6 

Earnings par.. ' 

: ! BS3p : 




CrdlnaryShare ’ 

’ 492p 

: 7:5p 

. 82? 

Cashflows miltton) 




• - 

. 140" - 1 


■ ’ ' ' 








'80. 




' 60" - • . 


T-~ . ■ ■’ 






3977 3978 


■A 






a 


[UftramarJ 


'j 

■ •' ! ' V J? ft *1 



ar 


. . 





"" if;; ■ 

- tJeAnnuai Report v^s posted toShareholders'on ‘ . C: 

M 20tliApnl 3982. Ifyouare not a Shasfioldef and would like 7ri ' T 

1 8 copy please rompiet&and re turn the coupon. 

‘I ' ^ HieSectotariesl bftramar ftC. Morgarirfouse. ' . . : 
1 Angel Court, London EC2R 7ALL 


J?:"""’ 









TEL Bros AND DEALS 


Financial Times Wednesday April 2L 


UK COMPANY NEWS 




Britannia Arrow bids arc’s mm 
for Gen. & Commercial takeover 


- . . . ■ T 


EUROPEAN OPTIONS EXCHANGE 


BY DUNQMt GAMPBELL-SMTTH 


A SINGULARLY unusual condi- 
tion governed a £15-3m bid by 
Britannia Arrow Holdings yes- 
terday for General and Commer- 
cial Investment Trust, counter- 
ing a £l3.Sm bid by Refuge 
Assurance agreed witfc G and C 
last Friday. 

The condition. Deserved the 
right of Britannia and its 
advisers, Lazard Brothers, to 
withdraw the count erbid “if war 
is declared or there are major 
hostilities without a declaration 
of war prior to 5 pm today.” 

Happily that deadline was 
passed watbout disruption from 
the Sooth Atlantic and & pro- 
posed share issue winch is peri 
of Britannia's bid now stands 
underwritten by a group of City 
institutions managed by brokers 
Rowe end Pitman end Carr 
Sebag. 

Britannia is offering shares to 
the value of 116.92 per cent of 
G and C’s underlying net asset 
value as and when the bid has 
become unconditional and 
Britannia’s shareholders have 
approved its terms. The bidder 
has set an upper limit of 37.8m 
new shares for the issue and 
each will be valued at 42p for 
the purpose of the bid. Any 
necessary increment in the bid 
price to match the 116.92 per 
cent evaluation will comprise 


cash.- 

G and Cs net asset value 'em 
April 13 was approximately 
£L3.1m, or 245p per Share. 
Britannia's bid on this basis 
would comprise shares valued 
at 42p each to a value of 286.5p 
for eatii G and C dare. 

■ The bid also presents a cash 
alternative equivalent to 103 per 
cent of the asset value. On the 
above basis, this would represent 
a bid of £13.5m or 252 -3p per 
G and C share; 

Refuge is offering shares plus 
a cash balance if necessary to 
give G arid C darefcoWers the 
equivalent of their company's 

net asset value. Refuge’s shares 
Closed 10p higher at 228p, 
valuing its effective bid at 262j> 
for each G and C share. 

Hr Arthur Booth, Refuge's 
managing director, expressed 
his surprise at the Britannia bid 
and announced that Ms board 
had no intention of increasing 
its offer. However, Refuge's 
advisers, Charterhouse Japfict, 
later issued a statement 
acknowledging that tender Rule 
42 of the Takeover Code their 
cheat was barred from 
announcing at this stage Its offer 
could not be increased. 

Lazards confirmed that it bad 
been in touch with Hill Samuel, 
which is advising G and C- The 


bank said it was hoped to secure 
the Gaud C board’s recommen- 
dation, perhaps as early as 
Thursday. 

Hr Stewart Goldsmith, a 
director of Britannia, said G and 
C’s acceptance of the Refuge bid 
indicated a willingness to con- 
sider takeover terms and he 
presumed G and C would 
recommend the better offer 

“There is no .question that 
there are very good precedents 
for offering more than the net 
asset value for an investment 
trust, even in cash terms,” said 
Mr Goldsmith. “ The key for our 
shareholders will be the relative 
profits which Britannia can earn 
over a period of time on the 
acquired funds relative to Any 
loss which may be made on the 
disposal Of the G and C port- 
folio." 

Britannia said its present 
intention was to liquidate G and 
.C’s portfolio at some stage to 
help provide cash resources for 
other activities. Including the 
expansion of Britannia’s own 
investments portfolio. The pro- 
posed share issue would also 
enable the company to broaden 
its institutional shareholder 
base. 

Britannia’s shares closed down 
lip at 40Jp. G and G put on 
13p to close at 24Sp. 


Sketchley again extends U.S. bid 


Sketchley, the linen hire and 
dry cleaning group, has extended 
its 540.6m offer for Means Inc of 
Chicago once again in the face 
iof a further delay in the dis- 
cussions between the anti-trust 
division of the U.S. Justice 
Department and ARA Services, 
w hich proposes to better 
Sketchley’s offer for Means. 

ARA has now agreed not to 
purchase the shares of Means 
tendered pursuant to its $37 per 
share offer until April 26. So. 
Sketchley has extended its own 
$33 per share bid until April 
23. This Is the third time that 
Sketchley has bad to extend and 
wait for ARA and the Justice 
Department to come to some 
decision. 

Sketehley’s TJ.S. lawyers con- 
tinue to make strong representa- 
tions to the Justice Department 
and to the Securities Exchange 
Commission w in order that the 
present unsatisfactory position 
may be clarified as soon as 
possible.” 


ARA’s counter bid has already 
exhausted the time allowed for 
an examination of anti-trust 
implications under the pro- 
visions of Hart-Scott-Rodino 
legislation but Sketchley’s 
merchant banking advisers in 
London believe that ARA will be 
under pressure to come to some 
form of settlement before May 3 
when shares tendered to it may 
be withdrawn should share- 
holders wish. 

The UK group acknowledges 
that it faces long odds against a 
successful conclusion of its own 
approach but remains convinced 
that tiie odds against a Justice 
Department biodc on ARA’s 
offer are not so long as to with- 
draw at this stage. B 

The costs of maintaining its 
interest in a bid for Means are. 
rising weekly. Sketchley has 
arranged a placing of 4m 
ordinary shares to finance fhe 
deal mid, with the placing fee 
rising By i per cent each week, 
the arrangement has already cost 


Sketchley an additional £50,000. 
The agreement, moreover, 
expires on the last day of this 

winnfh- 


BURTON GROUP 

BURTON GROUP, the Top 
Shop and Dorothy Perkins 
retail chain, confirmed yester- 
day that the chairman and chief 
executive, Mr Ralph Halpern. 
exercised an option to acquire 
100,000 shares at 56p per share. 
In the accounts for the year to 
August 29, 1981 Mr Halpern 
increased his option entitle- 
ment from 113,600 to 400,000 
shares. The exercise price for 
the additional tranche of 
options was 92p, based on the 
middle market price ruling on 
the last dealing day before the 
option was granted. 

The chairman’s holding of 
ordinary shares in the last 
accounts was 146,356 shares 


•mBawouca^ffJWB^ASAM g n a o k Fc giR DONLir 


IMI 


ISTETUTO MOBEIARE UAIIANO 


FRENCH FRANCS 53.200.000 

EUROCURRENCY LOAN FACILITY 


MANAGED BY 

BAN DUE DE LA SOCIETE FINANCIERS EURQPEENNE 

SFE GROUP 


PROVIDED BY 

MIDLAND BANK PLC 

SOCIETE F1NANCIEBE EURQPEENNE FINANCE COMPANY N.V, 

amoBoop 

THE BANK OF YOKOHAMA* LTD 
TORONTO DOMINION BANK 


AGENT 



SJrJEa BANKING CORPORATION LIMITED 

OX SUSP 



Banque Nationale d’Algerie 

US$30,000,000 
Floating Rate Notes due 1982 

Banque Nationale d* AJgcrie (“BNA”) hereby gives notice in accordance with . 
the Terms and Conditions of the US $30,000,000 Floating Rate Notes due 1982 
issued by BNA that the rate of interest for the tenth interest period running 
from 21st April, 1982 to 21st October 1982 has been fixed at 1614%- 


By> Kuwait Investment Company (S.AJS.) 

(The Fiscal Agent for the said Notes) 


21st April* 1982 


Unlike fhe BCI deal, winch 
i involved four other serious con- 
tenders, ft is understood that 
there were not any other serious 
contenders in the Westminster 
Gravels acquisition. 

> 

; Charterhouse 
f withdraws bid 
! for CCP 

Charterhouse Petroleum has 

* withdrawn its bad for CCP North 
1 Sea Associates in view of 

* revised arrangements with, duff 
1 Oil Company covering the 
' purchase of a 17.1 per cent stake 

■ in UK North Sea block 20/8 

■ from duff. 

i . A well is due to be started 
! ;on 20/8 next month. Charter- 
house said. It has a 9.S per cent 
r interest in adjoining block 20/2, 
: where oil was found last year. 

' It said the acquisition of 
duffs Stake in 20/8 was a 
"I central feature of its proposal 
to acquire CCP announced 
February 25. Cluff is CCP*s 
largest dmrefrolder with 29.9 per 
cent 

Charterhouse said its decision 
to withdraw its bid for CCP was 
also influenced by results from 
CCP’s North Sea well 12/28-1, 
and the below forecast level of 
oil -production from CCP’s 
Buchan field interest in the first 
quarter of 1982. 

CCP’s net current assets have 
seen a significant reduction 
since December "31, it added. 
Charterhouse was offering 
shares and cash worth 198p per 
CCP share. Tri central in a rival 
bid is offering 208.6p. 

TricentroTs offer document, 
issued on April 14, said 
irrevocable ' undertakings to 
accept Its terms had been given 
for 15.2 per cent of CCP’s shares. 

Is addition, Cluff confirmed 
it supported Triceatrol’s offer 
and would tender its 29.9 per 
cent interest subject to the 
lapsing of its existing under- 
taking .to accept the Charter- 
house b id. • 

BAT US D EADLINE 
IS EXTENDED 

Batus, the U.S. subsidiary of 
BAT Industries, has extended 
the deadline on Its 3352m' bid 
for Marshall Field, the Chicago 
department stare' company to 
6 pm (Eastern Standard Time) 
today instead of the previous 
deadline of April 19. 

Batus said yesterday that a 
total of about 8fim common 
shares and 639,000 preferred 
shares had been tendered by the 
April 19 deadline. The tender 
offer price is $30 net per common 
share rash and $54 net per pre- 
ferred share cas h . 

The deadline had ■ previously 
been extended because Batus 
complied with a Federal Trade 
Commission request for informa- 
tion about the bid, and under 
U.S. law this meant that Batus 
could sot purchase any Marshall 
Field shares until 10 days after 
it had supplied the FTC with the 

, information. 

Receivers for 
Weldon and 
Wilkinson 

Weldon and Wilkinson, Notting- 
ham-based dyer and finisher, has 
called in as Receivers Mr T. 
Houghton and Mr J. Doleman, 
partners in Touche Ross and Co. 

Persistent decline in demand 
and the erosion of margins, 
coupled -with growing imports of 
fabric and clothing have led to 
the decision. Reductions in the 
workforce since earlier "this year 
have not been enough to stem 
the losses." 

The company has 200 em- 
ployees at present 

SPAIN 

Price 

April 20 % :+‘ or - 

Banco Bilbao ...- 348 

Ben co Central 341 —2 

Banco Exterior '305 

Banco His pa no 3M —2 

Banco Ind. Cat 110 

Banco Santander 335 —4 

Banco Urquijo 202 — 2 

Banco Vlxcaya 383 —3 

Banco Zaragoza 246 

Dragadoa .......... IS "+2,5 

Eapanola Zinc ............ 64 

Pena 61 —0.5 

Gal. Praciados 36.5 +0.5 

Hid tola 62.7 -0.3 

Ibarduero S6.S -0.7 

PetrotaM 90 .—0.7 

Petra fiber 99 

Sagafea 9 

Telefonica ..... — ......... 69.5 —0.5 

Union EhaL 63.7 !+02 


MW 

VoL j Last 


Aug. 

VeJ. I Last 


Amey Roadstone Corporation, 
the construction materials sub- 
sidiary of Consolidated Gold 
Fields, has agreed terms to buy 
Westminster Gravels, a sub- 
sidiary of Royal Bos Kalis West- 
minster, £b& Hutch dredging and 
construction group, for a gd™ 
believed to be about £ 12 . 5m cash. 

The deal will give Amey Road- ; 
stone an increased share of tbe I 
UK dry aggregates market from 
its present 15 per cent of total 
sales, to around 17 per cent ARC 
says the acquisition represents an 
important stage in remfdsriug 
its long-term commitment to 
marine dredging. 

Westminster Gravels bad a 
turnover of £7.3m in 1981 with 
pre-interest and pre-tax profits of 
£946,000. It supplies marine 
dredged sand and gravel 
secured from areas just off tbe 
coastline in the English Channel. 
Westminster Gravels owns three 
dredgers, including the Deep- 
stone, the largest aggregate 
dredger in Europe, and employs 
about 100 people. 

Royal Bos Kadis We stmi nster 
said yesterday that the m arfaw 
aggregate dredging business was 
a fringe activity for the com- 
pany. Its involvement dates 
back to tile 1950s, but the 
company now wants to concen- 
trate its resources and manage- 
ment effort on the main RBW 
business in dvU Engineering. 

Tbe acquisition is being 
handled by the ARC Marine 
company and Is the second ARC 
acquisition in the aggregate 
market announced tins month. 
Last week the company pur- 
chased Bine Cirde Industries’ 
aggregates business for £37 .6m 


GOLD tt 8300! 

GOLD C 

GOLD C 55501 

GOLD C 5575; 

GOLD C SACO" 

GOLD C 84SSj 

GOLD P 5300J 

GOLD p H2» 

GOLD P S3SO 

GOLD P 8375 

GOLD P 2400| 

123* ML 31 87-91 

C F.107AO) 
C F.UOl 
C F.llRSOf 
P F.UOl 
12 ML 81 65-88 

C P.102.50J 
105, rn.80 86-95 

C FA7.sc; 
C F.lOCt 

• - C FJ:02JSO- 
C F.1Q5I 
P FJOSlfih 
P F.lQBj 

lilt NL 83 89-92 
C F.1QSL30J 
. C F.104 
P F.lQ23ffl 


46 ! 24 60 

— 28 46 

12 ! 25 86 

4 J 40 ia 

2.50 33 10/ 

2^0 ai 6 

■3.30 I — — 

9 A 14 13 

17 E 82 20.50 { 

9 40 

- 5 651 


— j — \ a 6.90 a 

too 4,80 m 489 420 

— I — ] ISO 2.60 

— } - 1 100 0.50 1 


Nov. 

VoL I Last stock 

BO |' 77 Ai 5343 


2 16.50 
6 23.50 


ibl : 


_ ! _ J 40 I 3A0 1 ‘ — J - [F.106J50 

. — 1 a esoet — — F.icWD 

5 5.70 110 4.10 — t- n 

BO JL50 3100 WD - - 

— 100 1.40 „ 

- I - 803 1 - - 

— — 50 2 — — 


OSAO' 1 1 SR 18 | 2A0 | 
ggj .80 joafl mm | 


ABN C 
ABN P 
AKZO C 
AKZO C 
AKZO C 
AKZO C 
AKZO P 
AKZO P 
AMRO C 
AMRO P 
HEM P 
HOOG C 
HOOGP 
IBM C 
KLM C 
KLM C 
KLM C 
KLM C 
KLM C 
KLM P 
KLM P 
KLM P 
KLM P 
NEDL C 
NEDL C 
NEDL C‘ 
NEDL P 
NATN C 
NATN C 
NATN P 
PHIL C 
PHIL C 
PHIL C 
PHIL P 
PHIL P 
RO C 
RD C 
RD C 
RD P 
RD P - 


f^oo; 

F.230, 
4 FAS: 
Fsrrjsoi 
FAO 
FASAOl 
F.27.50] 
F.30j 
F.50; 
P.43 i 


July 

15 I 1,70 
1* ( 4.80 
60 I 4.80 
77 I 2J50 
119 UO 

as 0.50 
10 o.ao 

SO 3.70 


AO I — I — IF.IO4.B0 

AO 1 180 ‘UO „ 

I 1 I „ 

Jan. 

- j — I — jF-291 

-I - I - fjmIbo 


F.20^ 

F-28.SOj 

FA2.50, 
F £6 

£S) 

F.100 

F^ 

F-BOi 


TOTAL VOLUME IN 
A=Ask£d 


29 10.50 

173 6 

68 3.30 

6 0.80 

79 1.80 

91 4.60 

206 8.50 B 

4 11 

II 4.30 

7 1.40 8 

4 11 

23 1A0 

10 2 
81 6, 

143 2.60 

98 1 

72 lio 

81 11.20 B 

222 3.10 

86 0.90 

168 1 
89 6 

CONTRACTS: 

B=Md 


65 3A0 

50 1AO 
10 1 


30 1.60 

30 0.70 


10 29.80 
5 29.50 


45 9.40 

IS 6J20 


7 I r°. 

11 4.30 F.55A0 

— — |f. 17 


8l<iS&3ta 
— IF. 104.80 


— I - I - I - ImAjo 


15 8.40 — — „ 

19 2,60 — - „ 

— — — — FjjT 

65 3^0 5 3.70 B _ 

410 USO — — „ 

14 0.70 - - Z 

SO ISO. 10 2JUt 

8 11.90 — — FJJ1 

12 4 18 B 

22 120 IS 2.60 M 

10 1.70 — — 

14 6 - - „ 

7501 

C=Cal! P— Put 


Expansion 
at Green’s 
Economiser 

TURNOVER AND profits con- 
tinued to improve in line with 
expectations at Green’s 
Economiser Group according to 
the directors- Taxable profits for 
1981 moved sharply ahead from 
£L87m to £2R2m on higier turn- 
over of £32JL3m, against £30. 67m 
for the previous 53 weeks. 

The final dividend of this hold- 
ing company of engineers has 
been effectively raised from 
2.69p to 2.88p net, which gives a 
higher total of 5.7bp (A93p 
adjusted). 

Earnings per 25p share were 
given as 22filp (1514p adjusted). 
Second half pre-tax profits 


improved from £788,000 to 
£L4Tm. 

Pre-tax profits for the 12 
months were sfirucq. after an7 
months were struck after an ! 
exceptional debit last time of i 
£204^246, and interest payable of 
£117, 119 (£207,440). However 
interest receivable of £253,515 
(£67,631) was also included. 

Tax vas higher at £602^03 
(£377,963) — the charge was 
reduced by stock relief provi- 
sions of £201,000 (£218.000). 

Ordinary dividends absorb 
£565,862 (£485,024). 

RILEY LEISURE 

THE RECENT rights issue by 
Riley Leisure, the manufacturer 
of snooker tables, has been taken 
up in respect of 71.7 per cent 
The balance of the shares have 
been sold at a net premium of : 
025p in the market for the bene- 
fit of entitled shareholders. 


U.S. $150,000,000 

Kingdom of Sweden 



FIoatbg/Fked Rate Bonds Dae 1991 

In. accordance with the provisions of the Bonds, notice is 
hereby given that for. the three months interest period from 
21st April, 1982 to 21st July, 1982 the Bonds will carry an 
Interest Rate of 15re% per annum. The relevant Interest 
Payment Date trill be 21st July, 1982: The Coupon Amount 
per US. $5,000 will be US. $19827. 

On 12th April, 1982 fhe Tfcn Tfear Wfeekly Tbeasury Rate 
was 14 J3 per cent, per annum. 

Morgan Guaranty Trust Company of New York 

Agent. Bank ... 


LONDON TRADED OPTIONS; 

April 20, Total Contracts Rite Cans. IMS Pots 864 
] ■ | April 1 July f . o?t. T - 




BP (e| 

BP (ci 
BP (O 
BP Jc) 

BP ipl 
BP <P) 

BP Ufl 
BP (p) 

CU (Ci 

Coni. Gld (o) 
Con*. Old to! 
Cons. Old (p) 
Cons. Old [pi 

CMds. (c) 
Ctifis. tel 
Ctjds. <c) 
CUBA (W 
GEO (cl 
GEC (el 
GEC (o) 

GEC (p) 

Gr'd Met (<=> 
Grid Met (cl 
Grid Mat, Itt 
Grid Mot. (C) 
Grid Mot (p^ 
Grid Met. (pit 
Grid Met. (p» 

ICI (o) 

IC 1 Col 
ICI (e) 

ICI id 
ICf (pi 
ICI (p> 

Land Sec. tc) 
Land Sec. let 
Mks ft Sp. (o> 
Mks ft Sp. (e) 
Shell (o> 
Shell (d 
Shell (c) 

Shell (e) 

Shell (p) 
Shell (p) 


28 1 1U 
8 159 


4^ . 1 
8 1 

82 2 

82 - 

A I 

8 - 

13 3 

23 8 

15 62 

file 7 

Ua — 

127 10 

27 88 

5 10 

5 0 

48 10 

26 2 

9 10 

2 — 

1 — . 

4 8 

' 17 — 


14 _ 

u 

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honrho to) 
Lonrho Cc) 

Lonrho to) 

Lonrho (p) 
PftO to) 
PftO (c| 
PftO to) 
Racal (c) 
Racal (o> 
Racaito) 
Racal CP) 
Racal (p) 
Racal (p) 

RTZCc) 

RTZto) 

RTZto) 

RTZ (p) 
Van! Rf*. Co) 
Vaal Rt*. (o) 
Vaai Rfs. CO 
Vaal Rfs. (p) 
Vaal Rfs. (p) 
Vaal Rfs. Cp) 


May 

30 10 

8 29 

a — 

4 2 

16 26 

7 146 

8 — 

1 4 

30 2 

13 61 

6 4 

3 2 

3 7 

1 — 

8*1 23 


August 

48 — 

29 10 

10 13 

7 10 

19 15 

Ilia ■ 2 

71* 140 

9 — 

44 S 

52 3 

SO 16 

13 — 


80 4 

23 48 

6 — 

10 1 

44 . 6 
2 9 

4 - 

24 — 

44 — 

8 — 


— ; S3 —W ■}*# 

7 21 *£. 

” 

is eS S 

82 34 . 

sj; 

Novani&r 

— 63 J y 5— * 

10 . -4Q ? 

13 SO O.u-1 

IQ 13- ..Wf -ts: 

is 20 - . 

S' 15 

.40 - 84*8; 

"5 . 57 

3 45 V-i-.,. 

16 . 38 —ifci 

A : 

77 13 

5 13 r u_-i '■ 

— 28 .C ~ 

2 *8 
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1 37 . -I 

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io ■ Be - in.;-;. 
10 

— • n . •.-% " 

18 .-52- ' — 

14 84- .a> 

30 30 — 

1 64 - 

8 -'44 * — 

- 14 X 




THb advBilfcsnHrt is faauad in cotafianre aUmtiB ra^Bfunartsof 
IheCouncStf Stock Exchange. . 


Tl 


MICROWAVE 


* ... .v^.n . 

" " • " *** " ■ •T 1 1 **■ v' ** i" .---— ■ ■ . — r- * 

. . Teiecamromicaacns, broadcast and dafcncg etociitirifca .. 
(texparaftdh England uaferfi»Ct«3atoActi19Wto3ta?64to» 139^528) 

.■r ! : : • V- - •• . .- 


• //j .■ ShareGcptal ■ ?■ 

Auffioifeed. . : " '• > ■_ >. issued and 

• £ - 

294,600 OriharyataiesorSheach 251,600 

5,400 Employee shams afSpaa^i - 5,400 - 


In comacfcrrwfih a Placing by Stock Beccfi& Co of onShory Shares of 
25p each al 2B0p porahare, appficafion wl] be made to Ihe Coutd & The Stock » 
Eoteige lor the grant ofpenrission to deal In the whole of the feawklonlnny 
sham capital at ConfrierttSl Afcrowave (Hofcfirgs) PLC fCSCTJIn IhdUnBaM 
Secwittes Market It is emphasised that no appfcsffion wffl be mads tor twsa 
securities to be admitted to Ssttng. Shams have been oflered to and wff be 
available throurfi toe market, a±jacJto toe grant of pGrriBsswn to deal n toe 
onftray shares In toe Unfisted Searttes Marioet Pattailos retaSng to eMLiva 
avafabte to toe Extol Slaton Services and copies oTthe. prospectus may be 
obtained during normM business hours On any weekday (Bark Hofttoys and 
Saturdays ejcceptedji^) to jsxlinc}ucflig41h May 1982 fnxrr. ' 


Stock Beech & Co : 

Wart*jTO»x«tTlTOerriorton Street London EC2N2AY. - 
afcld & West Buftflng,&oadOuey, Bristol BS14DD.‘ 
75 Edmund Street, BSmingtramB33HL .. - 
1 94a Seaboume Road, Soutoboume, Bcwrrarw* BH5 



TJAm/Hrilmnentconi4he*to1lm mqa tmum m i*&CauK8or7tio 6toct &cttmigetalnndQn. 


B WORLD BANKjl 

International Bank for Reconstruct 

and Development 

Washington, D.C. 

U.S. $1 00,000,000 6 5 /b per cent 
Swiss-Franc-Linked Bonds 1989 

The fbflewing have agreed to subscribe or pnxmre subscribera for ttie above Bonds 


Swiss Bank Corporation 


Credit Suisse 


Union Bank of Switzertind 


The Council of The Stock Exchange has admitted the Bonds to the Official list, subject only to the ^ - 

the Bonds. The ssue price of the Bonds is 100 per cent Particulars of the Bonds and the issuer are ‘ 


avaiiaWe in the statistical service of Extol Statistical Sendees Limited and may be obtained durina usual ’S8si AS 
business hours on any weekday (Saturdays excepted) up to and including 6th Mar, 1982 from the 
the issue: - . 

Cazenove & Co., Rowe & Pitman, W Greenw^i r 

40 TisUanhMktDa Vorrf . OTW1WWI ft 


12 Tokenhouse Yard, 
London EC2R7AN. 


O^Gate House, 
39-45 Rrtsbury Square, 
London EC2A1JA. 


Bow Belts Houses 


London EC4M 














Ai'sul. 


* 


• Financial .Times Wednesday. A pril 21 1982 

TECHNOLOGY 


EDITED BY ALAN CANE 


to ensure safety of nuclear pressure vessels 


BY DAVID FISHLOCK, SCIENCE EDITOR 


mm 

VAVE 
5SJPLC '■ 


ictio" 








■A NATIONAL validation centre 
iifor the inspection of nudfiar 
^pressure vessels will he set up 
tat Risley, Cheshire, later this 
Syear, ■ under, the aegis of the 
3TEJK Atomic Energy Authority: 

1 Teams responsible for' the 
^ initial and. in-service inspection 
£of the £10zn. 435-tonne steel 
^pressure vessels for Britain’s 

2 nuclear power programme will 
■have to he trained, and the 
-inspectors and. their techniques 
-approved, by this centre before 
Jthelr results are accepted by 
5the government’s nuclear ■ 
p inspectors < 

This centre r funding of which 
Li is now being discussed by the 
^Department of Energy and the 
£ 'Central Electricity Generating 
Board, Is one major con- 
sequence of the latest report of 
jj»the Marshall Study Group on 
*>the integrity of pressure vessels 

- for the pressurised water 
t reactor (PWR). 

7 It will be equipped with 
-full-scale components of the 
5 pressure vessel for Britain’s 

3 proposed 1,100 Mw PWRs, up to 
14 inches (35cm) thick. These 

t parts will he deliberately flawed 
; with cracks down to the 
; minimum size believed of con- 
sequence during -the 40-year 
7 life' of the reactor. 

; In preparation, UK AEA 

- metallurgists led by Dr Roy 
Nichols, head of the Risley 

» laboratories, have been develop- 
£ ing a “ whole technology of 
r creating cracks,’’ to quote one 
British authority. 

;• The pressure vessel is one 
l of three barriers preventing 

* escape of high levels of radio- 
Y, activity in a nuclear reactor 
p accident The others are the 

* cam which seal nuclear fuel, 

* set inside the pressure vessel; 
and the prestressed concrete 

- containment enveloping the 
v pressure vessel and other parts 

* of . the nuclear steam supply 
^ system. One task of the pres- 


sure vessel is to ensure that 
the fuel remains adequately 
flooded with coolant at all times. 

The UK AEA yesterday pub- 
lished the second assessment of 
the integrity of PWR vessels' by 
the study group headed by -Dr 
Walter Marshall. UK AEA 
chairman, and including several 
of Britain's top metallurgists. 
The report went to the Nudear 
Installations Inspectorate last 
month. . . . 

Two significant “political” 
differences distinguish the 
latest report from the first 
published in 1976. One is that 
it has been published in full, 
and therefore contains consider- 
able information previously 
regarded as commercially confi- 
dential to Westinghouse Elec- 
tric — as licensors of the nuclear 
steam supply system Britain is 
proposing to buy — about the 
behaviour of the steel under 
different operating conditions. 

The other “political” differ- 
ence is that the conclusions of 
this report have the unqualified 
support of Sir Alan Cottrell, a 
former chief scientific adviser 
to the Government and the roan 
who validated the pressure 
vessel design for Britain's 
present nuclear reactors. 

. Shortly after the accident to 
a PWR on Three Mile Island in 
1979, Cottrell released a letter 
written lo the Prime Minister 
expressing his fears about pres- 
sure vessel integrity. Dr Mar- 
shall recognised that. if 
Cottrell’s views were not to 
become a major weapon in the 
hands of opponents of the 
CEBB’s Sizewell B PWR project, 
his expert committee must do 
more to satisfy Cottrell's re- 
maining reservations. 

The 57 “essential” recom- 
mendations of the new report 
(and another 26 “desirable" 
recommendations) tacitly ack- 
nowledge that Cottrell was 
right. They also acknowledge 



Dr Walter Marshall. UK AEA 
chairman, recognised that his 
committee had to satisfy the 
remaining reservations 

that in certain respects the 
technology has considerably 
improved since 1976r and in 
others, that earlier /ears have 
proved unfounded. . 

In an exchange of correspon- 
dence with Marshall, published 
yesterday. Cottrell says he 
appreciates the “ many 
significant changes " since the 
1876 report 

“ If a PWR station is built 
in the UK then we shall 'be 
able to ben efi t from the 
experiences ■ and developments 
of the past six years.” He 
singles out radiation-embrittle- 
ment in the older U.S. 
reactor vessels,' due to poor- 
quality steel, and cracking 
beneath the cladding in some 
early French vessels, as two 
problems he would now expect 
Britain to avoid. 

With the very clean steels 


Sir Alan Cottrell, former chief 
scientific adviser to the Gov- 
ernment, appreciates “the 
significant changes” 

now being made, for example in 
Japan and France, crack growth 
rates are much lower than was 
assumed by tbe study group in 
1976. They can be kept low 
enough never to became 
dangerously large during the 
lifespan of a reactor vessel. 

This would, nevertheless, be 
verified at intervals during the 
vessel’s life (see accompanying 
sketch). The crucial question 
was whether cracks of a certain 
size could in fact, be detected 
with a high enough degree of 
certainty, both initially and in 
service. 

The OECD mounted a major 
exercise called PISC in which 
dozens of teams examined the 
same specially-flawed specimens 
of . steel by one carefully 
specified U.S. method of ultra- 
sonic inspection. ' 

' The results, to quote one 


Infra-red imaging helps spot heat loss 


■“The TECHNOLOGY of Infra- 
red thermal imaging, which 
advanced rapidly through 
— image- — intensifies te chniq ues - 
developed by the U.S. for night- 
vision use during the Vietnam 
war. has-been taken a step fur- 
' ther * Ihrou gh' (the co-operation 
1 of a British j eoitipany with an 

* American partner. • 

• Darnel Instruments, a small 
; company in Evesham. Worcester- 
: shire, has marketed- new equip- 

- meti, m- two versions, which it . 


believes' will greatly improve 
airborne surveillance at night 
and in poor weather conditions, 
and- also provide a new tool for 
industry. 

Although this type of equip- 
ment has been used largely for 
military, and security ' purposes 
its industrial applications are 
increasingly important, particu- 
larly in relation to energy 
saving. This is for identifying 
and quantifying heat loss from 
buildings, but perhaps, more 




KM TRUNK? Production Engineering Research Assocntion 
MELTON MOWBRAY LEICESTERSHIRE J-E13 OPB ' 

TeL (06641 64133 Ext. 329 or 360 . 


importantly in “seeing" tem- 
perature variations in industrial 
processes. 

It is estimated that machine 
energy inputs can be lowered 
by as much as 25 per cent in 
some industries, notably paper 
and plastics manufacture, while 
there are important applica- 
tions in petrochemicals, atomic 
energy and welding. 

Darnel claims that its new 
equipment Is the first com- 
mercially available high-resolu- 
tion ’infra-red system with- 
| direct television output for -air. 

1 borne field use. 

“The combination of a wide 
field of view. TV comparability, 
high resolution and ease of' 
operation makes Ihfravision an 
excellent night vision system,” 
the company said. Discussions 
wilh UK military -authorities 
are taking place. It is suggested 
that power failures and grid 
breakdowns can be avoided by 
airborne infra-red inspections 
of power lines and substations 
to pick out faults. 

The claimed superiority of 
the Infravision, system is based 
largely on the provision of its 
key element, the optics -ahd. 
detector package, by FLIR 
Systems of Portland. Oregon. 
It takes its name from the. 
abbreviation of Forward Look-, 
ing Infra-red (FUR). 

Darnel believe? that a vital 
requirement Of it? equipment is - , 
television compatibility, .with 
direct interfacing . of '. the 


I 


t 


: Today fiction is becoming reality, and the commun- 
ications revolution is reshaping the way we live. 

: In the forefront of-that change is Gwent, the new 
' centre of Britain's high • 

• technology industry. 

; Why have-so many- world 

leaders like Inmos, Mitel, 

Plessey Marine and 
Feix^tichgsen tpsej. _ 

■ up their new fectories in Gwent? _ JBL 
z Gwent has first class commun- 4 Bfcg| flBi ; 
Eications by rail and road. 

| “London is only ninety-three QyHp Qg * 
timinutes by high speed train, 

^and Birmingham is just ninetyj*^ 

^minutes away by motorway. 

. f Heavy investment in high- H (Ml 

S.tech education in Gwent 

^ Colleges gives firms a. head 

^start when it comes to'rkimtment 


} environment is essential to efficiency.. And people like living 
sin this attractive comer of Britain. ", . 

5 With factories ready now, and sites available for specialist 
r ; developments, Gwent 
i is proving a powerful 
? magnet for firms with 
*; the future in mind 







Take a look at Gwent, the new high- 


; r— - Please send me full details of Gwenfs service ohelp 

“ J expanskpor ra-toratioaofmdusliy . : • 



[ i Company 

1 1 ^1663331 ftjation in Company 

J 69867 I . 

*'• j . Telephone ^ 

- { Interest in: Property. j . ; . .000 aquam feet. Site: ................ .acres 

£ ! Financial Assaance Send tins ctxipon ta- Mr. OmtonPrabert.* 

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me*, te* cobm} irm 


NEW PRODUCTS 
INTERNATIONAL 

A new monthly publication to keep 
.you abreast with the very latest 
naw 'product developments world- 
wide. For details of a FREE TRIAL 
oHar. write today; 

Naw Products International 
□apt. FTT 

15 SsWaga Lana. London NW7 3SS 


member of Marshall's study 
group, “gave everybody a bit 
Of a shock,” Standards varied 
considerably and felk says 
Cottrell, “well below what was 
expected in principle.” 

Britain Initiated a new 
exercise, ' nicknamed **mini- 
PISC,” in which France and 
West Germany tods part. Some 
of Europe's best teams were 
invited to repeat the task u flin g 
the best method of inspection 
they knew. For exam ple, 
Harwell used a new method 
called time-of-flight ultrasonic 
inspection it has .been develop- 
ing. The newer techniques 
proved 'more sensitive in finding 
small cracks and much more 
reliable. 

The study says that the like- 
lihood of inspection failing to 
find cracks of significant size in 
the pressure vessel is “exceed- 
ingly remote." 

Given these newer techniques, 
correctly used, the study cal- 
culates the probability of 
failure in the class of pressure 
vessel the National Nudear 
Corporation proposes to buy for 
Sizewell B at less than one in 
a million per year. 

But it believes the vessel 
should be inspected more fre- 
quently once it has entered ser- 
vice, especially in the early 
years of its life, than is cur- 
rently called for by the U.S. 
ASMS XI specification. 

The study also recommends 
the use of an acoustic emission 
test as a way of detecting cracks 
while the vessel is being sub- 
jected to hydro test at pressures 
of up to three times its normal 
operating pressure. This test 
listens for the faint creaks 
emitted by metal under severe 
strain— “a potentially important 
wav of detecting defects of the 
order of l in deep.” 

An assessment of the integrity 
of PWR pressure vessels. UK 
AEA. £35. 






Inspection 
Gear on 
Mast Trolley 
Piatt 


The Arrangement Adopted 
For The Automated Ultrasonic 
&Visua! Inspection Of PWR 
Vessels 

The same automated inspection techniques, sketched here, 
should be used for pre-service “finger-printing” of the 
pressure vessel and for in-service inspection 


iMi 

for building products, 
heat exchange, fluid poWBt; 
special-purpose valves^ 
general engineering, 
refined and wrought metals. 
iMipte, 

Birmingham, 

England 


Tough at 
the top 
for Hell 


IT’S HELL at the lop— at least, 
that is bow the West German 
manufacturer of colour scan- 
ning equipment sees its position 
in the UK market 

Its chief competitor is, of 
course. Crosficld Electronics 
which has marie a virtue (a hat- 
trick of Queen’s Awards for 
Export) of selling its machinery 
overseas. 

Now. Hell has launched a 
new scanner — the 399— lo fit 
betwpen its small C2S9 compact 
scanner and its high perform- 
ance DC350. 

The machine, the 399. costs 
between £SO,OUO and £90.000 
and features laser, multicolour 
and programmed colour correc- 
tions. 

Colour scanners are essential 
In colour priming technology. 
They replace all the rime-con- 
suming and mess:/ equipment 
required to carry out traditional 
colour separarion work and 
make It possible to retouch and 
carry out colour corrections 
automatically. 

Hell claims that at maximum 
feed rate and using the multi- 
colour feature, the recording 
time for four colour srperntions 
in A4 format is five minutes. 

Details nr Hell’s equipment 
on 01-64S 7090. 


Easier life for the telephone repair men Moulding 


sensors' output with standard 
commercial components,- such 
as computerised video process- 
ing, video tape recorders and 
telemetry data links. 

This direct interface is not 
easily possible in the parallel 
scanning system, commonly 
used in military systems, and 
Darnel, therefore, adopted an 
alternative approach — serial 
scanning. 

“Serial scanning facilitates 
efficient use of the detector. It 
requires only a single channel 
of video processing, and this can 
be . achieved with less 
electronics. This results in less 
cost and lower maintenance 
than parallel-scanned common 
module systems,” the company 
said. 

. A further choice for Darnell 
waff required between two serial 
scanned FLIR designs, one 
using multiple detectors to scan 
small apertures, or single 
detectore scanning large aper- 
tures’ and Targe ‘optical beams. 

Moreover, it is claimed by 
FLIRS systems that much of 
the maintenance and difficulty 
in obtaining component parts 
for other high performance 
FLTRs have been engineered out 
.of its package. 

For simplicity, a single or 
double detector system was 
adopted, avoiding a complex 
electronic time-delaying network 
required for a large number of 
detectors, and. the additional 
cost and reliability problems. 

- “The mechanical and optical 
desien was carried out keeping 
simplicity as a primary require- 
ment and keeping the number 
of unique parts as few as possi- 
ble,” Darnel said. It claims that 
repairs conld .generally be 
carried’ out in any well equipped 
aviation electronics facility. 

. . J* The Infra vision sensor is one 
or two orders of magnitude sim- 
pler in complexity and price 
than-- any other comparable 
thermal imaging system with 
equal- -performance,” the com- 
pany said. 

LORNE BARLING 


THERMOCELL 

|k ROOF ught msulaiion 


USING ONE of the new breed 
of semiconductor chips that is 
able to generate speech from 
digital circuits, Teradyne has 
been able to make life easier 
for telephone repair men. 

Teradyne has for some time 
offered a computer-based tele- 
phone line test system which 
automatically tests, each night. 


each subscriber line to deter- 
mine its condition. 

Tbe faults are printed out 
centrally and often it is pos- 
sible. claims the company, to 
rectify a fault even before the 
subscriber becomes aware of it. 

Tbe new speech option Tera- 
dyne is offering allows the digi- 
tised results of the tests to he 


converted -to speech signals to 
be heard on demand when the 
repair man rings in from a 
remote point. 

Using a special handset 
equipped with keypad he calls 
a special number, keys a simple 
command and the system, called 
4TEL, immediately carries out 
the required line tests. 


POLYP ETNCO'S new MR series 
of injection moulding materials 
is now described in a series of 
leaflets from Polypenco, PO Box 
56, Bridge Road East, Welwyn 
Garden Cilv, Herts (Welwyn 
Garden 21221). 

The range consists of six 
formulations based on nylon six 
and 66 some mineral or glass 
reinforced or a mixture of both. 


PUBLIC NOTICES 


BUCKINGHAMSHIRE COUNTY COUNCIL 
The Buckinghamshire County Council 
announce that the Interest rate on their 
Variable Rate Redeemable stock 19S2 for 
the period 21n Aorll t9B2-2lst October 
1982 ,s 7-5125 being equal to i.% par 
annum above the average si* month 
sterling Depoalt rate offered on or about 
10.00 am on the 20th April 1982. 


METROPOLITAN BOROUGH OF 
WOLVERHAMPTON 

£ 10 . 000.000 91 day Bills Issued 14 
April 1902. Doe 14 July 1962 at 12if%. 
Applications totalled £22 ns- These are the 
only Bills outstanding. 


CLWYD C.C. BILLS 

£2m Bills Irom 20/4,-82 to 20/7/82 at 
1 S',%. Application £8. 25m. £1Dm out- 
standing. 


CENTRAL REGIONAL COUNCIL BILLS 
£2-Sm BIIH from 21.4.82 to 21.7.82 
at 13'g%. Application ClSt-m. £12i a m 
outstanding. 


NORTHAMPTONSHIRE CC BILLS - 
£12m Bills from 21.4.82 to 21.7.82 
at 13.203125%. Application £62 1 an- 
ti 2m Outstanding. 


KNOWSLEY M.B. BILLS 
tin Bills from 21.4.82 to 21.7 .82 at 
13>ia%. Application £9 , :m. £3m out- 
standing. 


BARNSLEY MJX. BILLS 
. £2.8 5m Bills from 21.4.82 to 21 .7-82 
at 13 7 »:%. Application £15.7Sm. £5.6m 
outstanding. 


EAST SUSSEX C.C. BILLS 
£Sm Bills from 21.4.82 to 21.7.82 it 
13*n*«. Application £37. 75m. £7m out. 
Standing. 


BOROUGH OF BLACKBURN BILLS 
£0.9m Bills from '14/4/82 to 14/7,82 at 
13%. Application CO. 9m. 


GRIMSBY B.C. BILLS GLASGOW DISTRICT COUNCIL 

£0A5m Bills from 21.4.82 to 2 1.7 .82 Bills Issued 21/4.82 £3.Sm & 13>»%. 
at 13i,%. Application £2 Am. £OASot Maturing 21/7/82. Applications £24 -5m, 
outstanding. Bills outstanding £21 -5m. 


FAIREY MARINE 
GROUP 

Design and Build High Quality, High 
Performance Patrol Boats, Work Boats, 
Military Boats and Lifeboats 

— Hamble in G.R.P. 

— Gosport in Al. 

—East Cowes in Steel 

+ Fairey Exhibitions 
Members of Fairey Holdings Ltd. 


PERSONAL 

FACT 

Still one of the leading 
unsolved health problems 
in the world — 

DIABETES 

Join us - Help us 
Support us 

BRITISH DIABETIC 
ASSOCIATION 
10, Queen Anne Street 
London W1H OBD 


ART GALLERIES 


LEFEVRE GALLERY. 30. Bruton St.. Wl. 
01-493 1 572- 3 AN EXHIBITION OF 
EDWARD BUR4. 1975-1976. Mon^Frl. 
10-3. Sat. 10-1. 

WHITECHAPEL ART GALLERY. White, 
chapel High St. 377 oi 07. Tube Ansoate 
E?To 2 May FRIDA KAHLO & TINA 
McDOTTI (ANSELM KIEPFER. Sun-Prl. 
. 11-1 JO. cl. Sat. Free. 

DAVID CARR ITT LTD.. IS. Duke Street. 
St. Jimn'i. SW1 INDIAN PAINTINGS 
1 525-1 62S. Until 30 April. Mon^Frl. 
10-5. 

F1BLDBORNE. 63. Quee-opron-e. NW8. 
01-586 3600, PICTURES FRDM LONG 
LARTIN — JIM GILBERT. 


(The Queen’s Award for Export Achievement) 

Roy Manufacturing Co. (Fashions) Ltd. 

is honoured to receive 

The 1982 Queen's Award for Export Achievement 

. Loading Manufacturers. Wholesalers and Exponore of 
Dresses, skins, blouses, lops, knitwear, leather garments end childrens west; 

ROY’S CORNER. CENTRAL HOUSE. 

. WHITECHAPEL HIGH STREET. LONDON El 7PE 
Telephone: 01-247 9995 Telex: 8BB767 


CLUBS 


EVE has outlived the others because ol • 
policy Of fair play and valoc lor money. 
Supper from 10-3 JO am. Disco and too 
musicians, glamorous hostesses, exciting 
floorshows. 189. Regent St. 734 0 557. 


CLASSIFIED ADVERTISEMENT RATES 




Single 

. • • • - 

Per 

■ column 


line 

cm 


£ 

£ 

Commercial and Industrial Property 

8.00 

27.50 

Residential Property 

6.00 

20.00 

Appointments 

8.50 

29.00 

Business, Investment Opportunities 

8.50 

29.00 

Businesses for Sale/Wanted 

S.50 

29.00 

Personal 

6,00 

20.00 

Motor Cars 

6.00 

20.00 

Hotels and Travel 

6.00 

20.00 

Contracts and Tenders 

8.00 

27.50 

Book Publishers 


net lifip ; 



1 r * 




The difference between knowing 
your market and winning the business. 


Premimn positions available .... 
fMiirfm nm she 30 COlUSUl rmc ) . 

£6.00 per single column cm extra 
For further details write to: 

Classified Advertisement Manager 
Financial Times, 10 Cannon Street, EC4P 4BY 


*ybu can get to know the 
market through desk research 
and advertising. Winning the 
business means getting to know 
your customers, and their needs. 

It’s all tbe difference between 
bemgin the market. . .and 
. being seen in the market-place. 
It’s su mme d np by a company 
called ITF-Industrial& Trade 
Fairs Limite d. 

You may know we are the 
worid’slargest, and the most . 
experienced, independent 
exhibition organisers. You may 
be unaware of the enormously 
wide range of markets our events 
cover. Or how cost-effective 
their market-place coverage is— 
thro ugh Euro pe, the Am e ric a s , 


USSR and Far East markets. 

Our knowledge of your 
market puts you in touch with 
some of the world's 
best-attended shows, which your 
prospective customers rely onto 
make their buying decisions. 

. Tb realise the full potential of 
IFF shows in the UK and 
overseas, simply contact- 
John Legate, 

Industrial & Tirade Fairs Ltd, 
Radcfifle House, Blenheim 
Court, SolihnU, West Midlands, 
B91 2BG1 Telephone: 
021-7056707. Bdex: 337073 


TburnKafeaflsourlMitoss. 






Financial Times 


1 98 2 


FOR EXPORTS AND TECHNOLOGY 


EXPORT 

ACHIEVEMENT 

4 A substantial and 
sustained increase in 
export earnings to a 
level which is 
outstanding for the 
products or services . 
concerned and for the 
size of the applicant 
unit’s operations' 1 


Aerocoldform: The company 
manufactures cold extruded 
mild steel components for use 
in the manufacture overseas of 
tractors and other vehicles, the 
main use being for piston pins 
and track link bushings. Exports 
go to the U.S. and West 
Germany. 

Aircraft and Instrument Demist- 
ing: This very small company 
(ste employees) manufactures a 
demist filter for night vision 
goggles and sights and anti-mist 
and frost coatings for glass sub- 
strates. These are in use with 
civil and military aircraft, tanks 
and other transport and were 
used on Apollo and Sky-Lab. 
96 per cent of the £fm turnover 
comes from overseas sales. 
Aircraft Furnishing Interna- 
tional: A medium-sized company 
manufacturing passenger seats 
for aircraft It has had outstand- 
ing success with a lightweight 
mark of modular design intro- 
duced in 1977 and now exports 
mainly to Bong Kong. U.S., 
Indonesia, Malaysia. Sweden and 
Philippines. An Award winner 
in 1968 and 1969. 

AlvLs: A United Scientific Group 
company, Airis is a ■ leading 
British manufacturer of 
armoured vehicles, and its 
Scorpion range is recognised 
worldwide. Over half the com- 
pany's output is exported with 
sales to approximately a dozen 
countries. 

Aston Electronic Developments: 
Manufactures broadcast tele- 
vision equipment, in particular 
a video character generator, 
which is now available with over 
ISO matching national fonts 
(character sets). The keyboard 


can be purchased in 16 different 
languages and the product is 
sold chiefly in Europe, Scandi- 
navia. Australia and South 
Africa. 

Aviation Traders (Engineer- 
ing): This subsidiary of Aer 
Lingus overhauls, repairs and 
mainminc aircraft and aircraft 
components owned or operated 
by overseas companies. An 
Award winner also in 1981, the 
company provides its services to 
customers in 17 countries. 

BECC Power Cables: A major 
UK manufacturer of copper and 
aluminium conductor electric 
cable for power distribution up 
to 66 kV. as used, in power 
stations, mines and railways and 
in industry' and construction 
projects. Award winner in 1976. 
BIS Software: This company has 
concentrated on the develop- 
ment of international banking 
software and its systems have 
been sold to some 47 overseas 
countries. Award winner in 
1981. 

Ballantyne Sportswear: A 
member of the Dawson Interna- 
tional Group manufacturing 
ladies' and mens' quality knit- 
wear of which 75 per cent is 
made of pure cashmere and the 
balance of new wool. Italy is 
the major export market with 
Japan the most rapidly expand- 
ing market. Award winner in 
1967. 

Baxter Fell Northfleet: Manu- 
facturers of modular shopfitting 
equipment — shelving, counters, 
refrigeration cabinets — steel 
prefabricated components and 
ancillary products. Supplied in 
kit form for easy assembly by 
local unskilled labour. Principal 
markets are the Middle and Far 
East and North and West 
Africa. 

Beaufort Air-Sea Equipment: A 
member of the BTR Group de- 
svguing and manufacturing life- 
rafts and lifejackets, specialised 
flying clothing, immersion suits, 
survival soils, anti-gas suits and 
submarine escape suits. It has 
associate companies in 
Australia, Canada and the U.S. 
and exports to 37 countries 
worldwide. 

Bihhy Line: One of the leading 
UK shipowning companies 
achieving increased earnings 
despite the difficult trading con- 
ditions in the shipping industry. 
It is concentrating increasingly 
on the more technologically 
sophisticated side of the market 
The company, which operates 


& 


THERMAL SYNDICATE p.l.c. 

MANUFACTURERS OF VITREOUS SILICA, 
FUSED MAGNESIA AND OXIDE CERAMICS 
AND RECIPIENTS OF 

The Queen’s Award for Export Achievement in 1977 
is honoured to receive 

The Queen’s Award for Technological Achievement 


TSL Thermal Syndicate p.Lc. 

P.O. Box 6, Neptune Road, 

Wallsend, Tyne and Wear, NE28 6DG. 


Telephone: 0631425311 
Telex: 53614 



manufacturers of oilfield 
drilling equipment 


< National Supply Company (O.K.) Limited 

ARMCO Registered Office: Cheadle Heath, Stockport, Cheshire, 
V England SK3 OSA Tel: 061-423 Ci755Telex: 667005 
Sales Office: 76 JermynSL London, England SW1Y 6NP 
Tel: 01-930 1055Telex: 91S423 > 


LANDIS LUND LIMITED 

Keighley— Yorks. 

Is privileged to be a major supplier of 

PRECISION GRINDING MACHINES 

to the World's leading 
Automotive Manufacturers 
Telephone: 0535 33211 

A division of Litton Industries Inc USA 


worldwide, were winners of the 
Award in 1972 and 1976. 

The Aircraft Group of British 
Aerospace: The group consists 
of six manufacturing divisions 
producing both civil and mili- 
tary aircraft Notable pro- 
grammes include the Harrier. 
Hawk, Tornado. Jaguar. Airbus 
wings, BAC 1-11, 146, 748, 125 
and Jetstream 31. The group 
also provides defence support 
services in Saudi Arabia and 
Oman. Over 50 countries have 

purchased its products. 

Butterworth Systems (UK): A 
subsidiary of Esso, the company 
manufactures and maintains 
marine and shore-tank cleaning 
equipment. It has also recently 
commenced the manufacture of 
high pressure water jetting 
equipment The company has 
regularly exported to various 
European and Scandinavian 
countries and the U.S. and has 
recently obtained orders in 
Spain. 

The Germiston Works of Cape 
Boards and Panels: Manufac- 
turers of non-combustible, 
asbestos-free boards and panels 
for shipbuilding construction 
and high technology industrial 
markets. Exports from Germis- 
ton are worldwide but princi- 
pally to European and Comecon 
countries and North and South 
America. Cape Boards and 
Panels received the Technology 
Award in 1980. 

Claridge Mills: A small firm, 
weavers of wooL silk, cashmere, 
etc., cloth and rugs and scarves 
of the same materials. Has 
flexible production facility 
which enables it to produce 
large or small quantities to suit 
customers' requirements. Ex- 
port markets are the Far East, 
North America, Western Europe 
and Australia. 

■Coin Controls: This company 
manufactures coin handling 
mechanisms for the amusement 
and vending industries. About 
80 per cent are made for use 
with foreign coins. Exports go 
to some 19 countries. 

Comfort Hotels: Of the 27 hotels 
which the company operates in 
the UK and overseas, 14 in the 
two- and three-star categories 
are located in the London area 
and are the subject of the 
Award. The largest number of 
foreign guests is from Germany, 
Sweden. South .America. U.S. 
and Switzerland and new busi- 
ness has been obtained from 



Trevor Humphries 

Mr Tony Tan tram, managing director of City Technology, 
with a tray of oxygen sensors. The eompany has won the 
Queen's Award for technological achievement In the 
development of the sensors which are used mainly in energy 
conservation and medicine 

several other markets, tank cleaning machines and 


especially the Far East 


portable water/air-driven gas 


Magnetic Media Manufacturing freeing/ventilating fans. The 
division of Control Data: Estab- division has 14 export markets 
lisbed in Wales in 1973, this coverm S Europe, Scandinavia, 
subsidiary of the American Singapore, Australia and the 
Control Data Corporation u - s - 

manufactures tape, disc packs Dowtv Mere: This member of 
and cartridges for computer the Dowty Group manufactures 
systems. It is one of the three heavy-duty conveyors for the 
leading suppliers in Europe/ mining industry which it 
Scandinavia, and now also ex- exports to some 17 countries 
ports to 22 other countries throughout the world. In recent 
worldwide. An Award winner years it has achieved very sub- 


in 1978. 

Coopers (Metals): The company 
exports reclaimed iron and steel 
scrap to a variety of European 
countries, notably .Spain, and 
also to India and the Far East. 
Cummins Engine: This promi- 
nent manufacturer of diesel 
engines is the UK subsiding 
company of Cummins Engine in 
the U.S. It exports in great 
volume across a power range of 
150-1,600 hp to all parts of the 
world, major markets being the 
U.S_ South America and the 
Middle East 

The Equipment division or 
Dasic International: This divi- 
sion’s products are designed for 
use on marine tankers and must 
comply w*th internationally 
agreed regulations for the con- 
trol of pollution and lo ensure 
safety. The products include 
permanently fixed crude oil 
washing equipment portable 


isri 


AVIATION TRADERS (ENGINEERING) LTD. 

ore proud to receive the Queen’s Award for Export Achievement 
for the second successive year 

TOTAL AIRCRAFT SUPPORT 


Twenty Rut Street, 
Stansted Airport. 
Stansted, 

Essex CM24 8 RE 


Tel: 0279 870991 
Telex: 81422 


An Aer Lingus Enterprise 



19 8 2 

HUGHES TOOL COMPANY LTD. 

is proud to have received 
THE QUEEN’S AWARD FOR 
EXPORT ACHIEVEMENT 1982 

We loould like to express 
our gratitude to our employees 
and customers for their contribution 
to this success 

AMF House, 25/28 Old Burlington Street 
A-r\ Loudon W1X 1LB 
y » 1 I x Tel: 02-439 6371 Telex: 25749 

A wholly owned subsidiary of the Hughes Tool Cn , 
Houston, U.S. A. 



We are proud to announce that Her Majesty The Queen 
has graciously approved the Prime Ministers recom- 
mendation that the Queen’s Award' for Export Achieve- 
ment 1982, should be conferred upon Aircraft & 
Instrument Demisting Limited. World leaders in the 
manufacture of Anti-Mist and Frost Coatings far 
optical elements. 

To our Customers and Representatives throughout the 
world we extend our sincere gratitude. 

AIRCRAFT & INSTRUMENT DEMISTING LTD. 

Brigitta-Maria Howe, Grave Read. Telephone: 01-529 7268 

Waltham Forest. London, E17 9BZ. Telex: 896598 Nomist. 


stanti al sales to China. 

Dreamland Electrical Appli- 
ances: This company is the 
largest British manufacturer 
and exporter of electric 
blankets. On a smaller scale it 
also manufactures and exports 
fire detection equipment From 
a strong domestic base, the com- 
pany has steadily increased ex- 
ports year by year and now 
sells its products in Europe, 
Australia and Sooth Africa, 
with some local manufacture in 
New Zealand. 

The Marine Loading Arm divi- 
sion of EMGO Wheaton. UR: 
This diwsion manufactures 
specialised loading equipment 
for the transfer of liquids and 
liquefied gases at ports and har- 
bours. A subsidiary of Eraco 
of Canada, it exports to about 
70 countries in all parts of the 
world, with recent notable suc- 
cesses in Saudi Arabia. India. 
Philippines and the Nether- 


lands. 

Fahrikat Industries: , This 
medium-sized company has pro- 
gressed - from manufacturing* 
lighting columns to fabricating 
steel poles and offering com- 
plete packages for power distri- 
bution requirements. Exports 
are made to the Gulf States, 
Nigeria, Cyprus, Hoag Kong.. 
Jordan. Eire, Kenya. Iraq, Saudi 
Arabia and Malawi. 

Fairey Allday Marine.- This sub- 
sidiary of Fairey Holdings 
designs and . manufactures 
aluminium, glass fibre and steel 
boats up to 30 metres long, 
major clients being Government 
and military authorities and 
commercial operators. It ex- 
ports mainly to Africa, the- far 
East and the Kiddle East with 
a major new market in the UJS. 
The Display Group of the Navi- 
gation Systems Department of 
Ferranti: This small display 
group designs and assembles the 
Combined M ap. a nd Electronic 
Displays (COMETD) installed pri- 
marily in military aircraft. The 
system has achieved outstanding 
success both in Europe and the 
UJL, with more recent entry to 
India. 

Donald Fisher: A small member 
of the Distillers Company which 
specialises in adapting its 
packaging for particular mar- 
kets. Export sales are world- 
wide with the main volume 
going to Central and South 
America. 

FLymo: a member of the 
Electrolux group of Sweden, 
is a well-known manufac- 
turer of lawnmowers. It exports 
to more than 80 countries in all 
parts of the world including 12 
new markets developed since 
1978. 

Peter Fraenkel and Partners: 
A firm of consulting, engineers 
whose overseas work is princi- 
pally in connection with the 
p lanning , design and. construc- 
tion supervision/management 
of works in ports and harbours, 
dockyards, coast protection. In- 
land waterways; roads, bridges 
etc, plus associated mechanical 
and electrical services. The 
partnership is currently active 
in Hong Kong, Thailand. 
Malaysia, India, Egypt, Nigeria 
and Africa. 

GEC Electrical Projects: This 
subsidiary of the General 
Electric Company specialises in 
the design manufacture, instal- 
lation and commissioning of 
complete electrical systems in- 
corporated in a wide variety of 


industries including xneials and 
mining, marine, rural electri- 
fication. and airfield projects. 
Contracts- are taken ' in~ many 
countries, with major current; 
work in India: the Middle East. 
South Africa, Nigeria, Central 
and South . America. 

GEC Turbine Generator*: This 
GEC subsidiary manufactures 
steam turbines and associated 
generators for fossil-fired and 
nuclear power . stations. It 
undertakes the design and 
-supply of -complete thermal 
power stations. Award winner 
in 1977, 1980 and 198L : 

H aisle International! A firm of 
. consulting engineers specialis- 
ing in public health engineer- 
ing, water supply and marine 
and harbour works. Its princi- 
pal export markets are Iraq. 
Libya and Sand! Arabia in each 
of: which territories local offices 
have been established. 

Head Wrightson Machine Com- 
pany: This company, part of the 
Davy Corporation. -designs, sup- 
plies, installs and commissions 
strip processing and finishing 
equipment, tube mills and 
^auxiliary equipment for the . 
metals industries. - Export 
markets are in East and West 
Europe, Scandinavia. India and 
South Africa. It has also re- 
cently obtained a large contract 
is Mexico. - 

Henderson Busby. Partnership: 
Consulting engineers specialis- 
ing in transportation and having 
ah internationally recognised 
expertise in - railway con- 
sultancy. The firm has -worked 
for over 120 years in the con- 
sultancy profession in some 72 
countries worldwide. 

Hoi born .Law Tutors: An inde- 
pendent law college providing 
full-time degree and profes- 
sional training for UK and 
overseas students. The college 
exports its services to some 15 
countries, mainly in South East 
Asia and Africa. 

R. G- Holland and Co.: Manu- 
factures ferro- titanium for 
use in the. production of steeL 
It exports to many countries in 
Western and Eastern Europe 
and also to the TJ.SL, Australia 
and the Far East. ■••••. 

Hughes Tool Company: This 
subsidiary of Hughes Tool Com- 
pany of the U.S., manufactures 
specialised tools and equipment 
for the oil, gas, mining, water- 
well and construction industries. 
It exports to some 70 countries 
in all parts of the world. The 


DONALD FISHER LTD. 

ARE PROUD TO RECEIVE THE 

mVgr 


19 8 2 

The Queen's Award for Export Achievement 

SUPPLIERS OF 
“YE WHISKY OF YE MONKS” 
DE LUXE SCOTCH WHISKY 
IN THE UNIQUE HAND-THROWK STONEWARE FLA60R 


1 1 Maritime Street, 

Leith, 

Edinburgh EH6 6SW 

Tel: 031 554 4388 Telex: 727400 

Cables: Kingfisher Edinburgh 


Redland Automation Ltd., 

h honoured to receive the 

Queens Award for 
Export Achievement 

Redland Automation are the 
leading manufacturers of electronic 
and instrumentation equipment used 
in the Traffic Control, Petrochemical 
-and Water Supply Industries. 

The company has fadfiries m the UK and the USA' and a- 
worldwide network oF agents and distributors. 

Redland Automation Ltd, 

King’s Worthy, Winchester, 

Hampshire, SD2 37QA 
Td (0962) 883200 Telex 47189 
a member of the Sarasota Group oF Companies 


company was an Award winner 
in 1980. 

HtuiUei&h Medical: Desiccr. 
manufactures .' and markets 
electromedical and electronic 
equipment for use in hospitals 
and for homecare. Products 
include blood flow and focul j 
heart- monitoring and detection'- v 
equipment. Over 85 per cent of 
output is ■’■exported _ to a dozen 
countries, revering Western • 
Europe. U£ n Canada and Japan. 
Incinerator Company; -Designs, 
manufactures -. and - install* 
incinerators in compliance with 
environmental emission stan- 
dards. Expons have been made 
to 28 countries'in ihe past three 
years, mainly in the Middle 
East. Far East and Africa. 

Instrument Colour Systems: 

The company markets a com- 
puter. based colour measuring - 
system used within the textile.- 
paint, plastics printing autf ' 
other colour based industries. 

It is exporting to more Sian 
27 countries including Japan, 
the Far East and Australia. 

James Marine Services: A small 
servicing company (21 cm* 
ployees) that provides 
marine machinery, equipment 
and essential spares for deep- 
sea merchant shipping fleets. 
Approximately 85 per cent of 
turnover la exported to more 
than 20 countries. 

Johnson Matlhey Chemicals: A 
leading manufacturer and ex- 
porter of catalysts, metallising 
preparations and a variety of 
high purity and speciality 
chemicals. It is also a major 
refiner of gold and silver, pro - 
ducer of bullion bore as well - 
as; licensors of chemical pro- 
cesses and trades with over 100 - 
countries. 

Johnston Pipes: A small com- 
pany manufacturing glass re- ] 
inf (need plastic pipes which are i 
much lighter than traditional j 

steel or concrete pipes. Regular - 

sales are made to the Middie | 
East and Eire with Nigeria and 1 
-Hong Kong as new markets. $ 

Kodak: This UK subsidiary of £ 
Eastman Kodak of the UA i«? | 
well established as one of Ibe J 
leading exporters of photo- 
graphic materials and equip- - 
. mem. with exports concentrated i 
on Western Europe. The com- j 
pany won Awards in 1970 and a 
1978 - | 

Landis Lund: This subsidiary of* 
Litton Industries of Cali forn ids 
manufactures large custom?! 

Continued on next page 3,- 


TOIjMF 




1981 1982 

BIS SOFTWARE LIMITED 

A member of the Business Intelligence. Services group of 
companies are proud, co announce that they have received 
the 

QUEEN'S AWARD FOR EXPORT ACHIEVEMENT 1982 
their second award for export achievements 

with 

MIDAS 

. a computer-based money management system 
BIS Software thank the 237 international bank branches 
and companies in 47 countries who have chosen MIDAS 


BIS Software Limited 


BIS 


SOFTWARE 


Reg is t er ed Offices . 

York House, 199 Westminster Bridge Road. London SE1 7UT 
Telephone: 01-928 3551 Cables: BI5MIDA5 LONDON 5E1 
Telex: 298607 



mm 


Sharideton Engineering Limited 

DESIGNERS AND MANUFACTURERS OF ALL TYPES OF 
INDUSTRIAL GEARBOXES . 

Wish to thank customers worldwide, -suppliers and the company 
' ■ personnel. for. making this award possible. 

' Kenwood Road, Reddish, Stockport. Cheshire, England, 
Telex No. 669169 Answer back: SELSTP G 
Tel: 061-442 8533 


AIRCRAFT FURNISHING INTERNATIONAL LTD. 

Manufacturers - of . passenger seats for aircraft 
are proud- to receive the 
Queen’s Award for Export Achievement 
for the third time. 

10 Lyon Road, Hersham Trading Estate. 
Walton-on-Thames, Surrey. KT12 3PY. 

Tel: Walton-on-Thames 26261 Telex: 262310 


JL TIBER TIM PRODUCTS LTD. 

Sp . FIRELIGHTER MANUFACTURER 


Is' proud to announce they have received the " Queens Award 
for Export Achievement 198L-" We would like to express our 
gratitude to employees, customers and suppliers For their contribu- 
tion to our success. ' 

Tiger Tim Products Ltd, 

Rhosesmor Industrial Estate, Tel: Halkyn (0352) 730861 

Rhosesroor, Mold, Ciwyd, N. Wales Telex: 61218 TIGER 













Financial Times Wednesday April 21 1982, 


Her Majesty the Queen has made 91 awards to British companies for export 
achievement this year and 19 for technological achievement 


Continued from previous page 

technically advanced 
grinding machines, mainly for 
automobile industry. It 
1 ^-sports to Central and South 
. .. vnerica, Mexico, Western 
^ Europe, India- and Australi-a. - 
•»*.' , - . . 

’ r v ‘‘-. jpuinte Broach Company, divi- 
1 :, t:iir.a ttf. Staveley Machine tools: 
" ■ :i ■' c.Jli is manufacturer of broaching 

- . , ' s machines, broaching tools and 

Associated products Is among 
"■ ni u me leaders in its field and woh 
y- .."m Award in 198^. Most of its 
V products are used in the mami- 
• K -«{ lecture of aero engines. 

Life Science Research: A sub* 
■'? vadiar? of IMS International of 
. » New York, this company under- 

, lakes contract research for the 
v medical, pharmaceutical, agro- 
••■,. chexnical, medical food and food 
• - :v ' additive industries. 

' ' Liquid Plastics: The company 
■ ' ^ ■ jnanufactures plastics-based 
. ’ ‘ ■ waterproof coatings and fire re- 
^.tarfant finishes. Exports are 
-worldyride and several new mar- 
v "" V-Trets have been established in 
' r;: f iv i. recent years. 

1 ^Actuation division of Loeas 
y. Aerospace: This division de- 
' ^-siansr^ develops and mamifae- 
V' hires hydraulic and pneumatic 
‘^■actuation systems for aircraft 
‘ 1 ;•*? 'secondary flying control 
.systems, aircraft. gas turbine 
1 engine thrust reversers, and 
. ,v. other engine and missile actua- 
... “^tion systems. Key markets are 
‘1- Prance, West Germany and 
r •■Italy iuid exports are also made 
.. i- to -Tap an, India. China and 
" : -Canada. An Award winner in 

• , ' Mahoy and Johnson: ManufacN 

’ .V; tores. - structural engineering 
.. ..r^cf'.iDment, partTcularly unit 
instruction bridging. Regular 
ales are made to over 30 
' - .■oimtries worldwide. Newer 

0 “-m.Tkets are North and South 
'"Ar? erica and Indonesia, in 

’ "-/•Inch -country a local manufac- 

1 r arrangement was agreed 

l rthe Indonesian .Govem- 
v: '.ncnt - for 200 Bailey bridges. 

• r*ri\v.'ard winners in 1973 and 

- .-,--.078. 

•••Mlarliq-Bakor Aircraft: This 

• c . -oninanr designs and manufac- 

urcs ejection seats for use in 
\r niiitary aircraft. Over the past 
' : - 'S years almost 5.000 lives have 
. >..'?en saved by the Martin-Baker 
•. ?: :.rstem; which is installed in 
he military aircraft of 67 
. ^ , ountries. 

.-Sy^erz, and McLellan: A long- 
. . established fir mof consulting 
nsineers whose main activity 
r ‘ " s ; in large scale electric power 


generation and transmission 
schemes. The firm operates 
worldwide providing its services 
to some 40 overseas countries. 

Metier Management Systems: 
Formed in 1977, overseas earn- 
ings are from the sale (and 
rental) of mini-computer-based 
information facilities for pro- 
ject management, and royalty 
income from licencees overseas. 

Michelin Tyre: Subsidiary of 
French company manufacturing 
car, truck, bicycle tyres and 
tabes, flaps and wheels. Sales 
are made to over 100 countries. 
Micro Focus: A small company 
(45 employees) developing and 
marketing computer software 
products. Overseas business is 
almost entirely from the CIS 
COBOL product range and par- 
ticular success has been 
achieved in the UJ3. and Japan 
as well as a number of Euro- 
pean markets. 

Micro-Image Technology: Manu- 
factures ultra-pure chemicals 
for supply to the semi-conductor 
and related industries. Exports 
to Western Europe and the 
Soviet Union and some East 
European countries as well as 
to Japan and Algeria. 

S. A. Monk: This subsidiary of 
Dostour Engineering manufac- 
tures knitting machines, fabric 
transfer printing machines and 
fabric examination machines. 
Since it was re-formed in 1975 
it has developed markets in 
many part s of the world. 

Morgan Grenfell: A merchant 
bank providing services mainly 
in the banking, corporate 
finance, investment manage- 
ment project and export finance 
and Eurobond fields. -These 
services are exported to most 
parts of the world. 

Morris Banbury Jackson Le 
May: This company is a lead- 
ing exporter of hops and hop 
products to many parts of the 
world. 

National Supply Company 
(UK): This subsidiary of 
Armco of the UJS. manufactures 
a wide range of oil drilling 
machinery in various locations 
in England, Scotland and 
Northern Ireland. 

Licensing division of Netlon: 
Exports machinery for making 
nets and meshes to 17 coun- 
tries, mostly in Europe. 

T. P. O’Sullivan and Partners: 
A small firm of consulting civil 
engineers operating mainly in 
the fields of transport and urban 
development, with services 
designed specifically to meet 


the requirements of public 
sector organisations in develop- 
ing countries. 

A. H. Philpot and Sons (Milk 
Powders): Exports dried milk 
products to most parts of the 
world. Many new markets have 
been developed in recent years. 
Phosyn Chemicals: Produces 
trace element fertilisers and 
provides associated analytical 
and technical services. The 
traditional markets are France 
and Libya 

Pirelli General; This subsidiary 
of Pirelli manufactures electric 
cables and accessories, and 
through its subsidiaries and 
local teams abroad undertakes 
multi-discipline turnkey pro- 
poets, involving civil works 
and the supply and installation 
of cables and complementary 
capital goods. The company 
exports to over 100 markets, 
Portals Holdings: Portals com- 
prises three major businesses, 
bank note and security papers, 
water treatment equipment and 
chemicals and engineering 
machinery far the graphic arts 
and packaging industries. It 
trades worldwide and in 1981 
direct exports from the UJv. 
exceeded £50m. Tbe Group won 
aii Export Award in 1977. 

Tbe Fragrance division of PPF 
international: This member of 
the Unilever yroup manufac- 
tures fragrances and flavours 
which are used in the manufac- 
ture of toiletries, soaps, tooth- 
pastes. etc. Exports are made 
to some 70 countries. 

Quest Automation Systems: 
Manufactures computer-aided 
design and manufacturing 
systems, including sophisticated 
software. Exports are made 
-to Europe, Scandinavia. Austra- 
lia. China, U.S-, South Africa 
and Japan. 

The RHP Precision Division of 
RHP Bearings: Manufactures 
high precision hall and roller' 
bearings in a full range of iiu-h 
and metric . sizes in meet the 
needs of all markets, particu- 
larly machine tools. It has estab- 
lished markets in Italy, U.S., 
Spain, India, France. Taiwan, 
Australia and Canada, 

Avionics division of Racal-Dccca 
Navigator: This division designs 
and manufactures airbnme 
navigation equiment for heli- 
copters and fixed-wing aircraft. 
Its products have been fitted 
in 94 different types of aircraft 
in 52 countries. 

Racal Security: Using infra-red . 
and microwave technologies, 
this small company' within the 


Racal Electronics Group designs 
and manufactures electronic 
intruder detection sensors and 
associated equipment for the 
security indusrty. The com- 
pany now exports 85 per cent 
of its ougrut- 

Ransomcs and Rapier: This 
manufacturer exports cranes 
and eartbmoving equipment to 
many parts of the world. 
RetQand Automation: This 
former subsidiary of Redland 
has been acquired by a manage- 
ment based syndicate. It manu- 
factures electronic traffic 
detection, analysis and control 
equipment: industrial process 
instrumentation measuring the 
density and flow of liquids and 
gases, and water industry 
instrumentation. Tbe company 
exports to 29 markets. 

Boy Manufacturing. Company 
(Fashions): A small firm which 
makes extensive use of out- 
workers to manufacture ladies' 
dresses, blouses' and skirts; 
suede and leather garments; 
and children’s wear. Currently 
the most important market is 
Libya. 

Rust on Gas Turbines: This 
member of the GEC Group Is 
among the leaders of the gas 
turbine industry. Large 
volumes of exports go to all 
parts of the world and five new 
markets have been established 
in recent years. This company 
won Awards in 1969, 1977 and 
1978. 

Sbacklelon Engineering: This 
small subsidiary of Shackleton 
Management manufactures 
Industrial gear units for 
mechanical power transmission 
drives primarily for use in the 
North American oil industry. 
The principal markets are U.S„ 
Canada, Holland, Belgium and 
India. 

Simon Food Engineers: This 
subsidiary of Simon Engineer- 
ing designs, supplies, erects 
and commissions complete 
manufacturing plants. It 
exports machinery and 
accessory equipment associated 
with food processing plant 
mainly to South America 

UK Overseas Group of Smith 
Kline and French Laboratories: 
This group exports human 
pharmaceuticals. Under a 
franchise granted by the parent 
company in the U.S., the group 
exports to Asia Minor,- tbe 
Middle East and parts of Africa. 
The Cheltenham division of 
Smith Industries Aerospace and 
Defence Systems: Manufactures 
aeronautical control and display 
systems. Its products have been 





,.-rt w 

j0^ l > 


I^yearwasverytoug^J 
many of tie world’s important economies ■. 
•were iniecesskm. 

. T^oursafetyeqmp^ 

Beaufort Air-Sea EquipmentLimited, has 
wona 1982 Queens Award for ExporL 
That’srexy good for our shareholder — 
but die special value of our efforts lies in the 
extracontt&uto 
the country as awhole. 

*BTR 

B^plcStt rea- tow n House 
\? Wf*nf .SqnareLcgtdon SW1P ZPL 
01-8343848 


specified as standard fit on three 
types of Boeing aircraft, in 
spite of stiff domestic U.S. 
competition. 

Stewart Wales, Somerville: 
This small company (27 
employees) manufactures 
specialist surface coating, 
similar to paint. It exports to 
the Middle East and is now 
starting to expand into the Far 
East 

T. L Chesterfield: This member 
of the Tube Investments group 
manufactures seamless steel 
gas. cylinders. The com- 
pany bas exported to 38 
countries in the past three 
years including 11 new markets. 
Tiger Tim Products: A smafl 
company (30 employees) manu- 
facturing firelighters made 
principally of kerosene. The 
major export market is West 
Germany with other European 
countries and Malta, Cyprus, 
Bermuda, Tahiti and Saudi 
Arabia providing outlets for 
these products, 

Richard Unwin Internationa]: 
This very small company (six 
employees) obtains orders for 
military pyrotechnics and sub- 
contracts their manufacture. It 
exports primarily to Middle 
Eastern and African countries. 
VG Instruments: A subsidiary 
of Eagle Star (Holdings) it 
embraces 10 subsidiary 
companies which manufacture 
a wide range of scientific instru- 
ments and systems. It exports 
to many countries. 

Video Arts: A small company 
producing training and educa- 
tional films, with comple- 
mentary training publications 
also producing sponsored films 
commissioned by third parties. 
Wailwin Pumps: The company 
manufactures pumps which it 
exports together with sewage 
equipment and other installa- 
tions. Exports go to about 20 
countries with the greatest 
concentration in the Middle 
East. 

Watercraft: This medium-sized 
company manufactures survival 
craft for the oil Industry and 
for ships, together with ships* 
davits and commercial craft. 
Wearwell: Manufacturers of 
ladies’ and children’s outerwear 
— skirts, slacks, dresses, suede 
and leather wear etc. — men’s 
outerwear — coats, suede and 
leather wear. Overseas sales go 
to the Middle East, Europe and 
North Africa. Award winner in 
1980. 

Young’s Seafoods: One of the 
leading exporters of fresh 
chilled and frozen seafoods. 


TECHNOLOGICAL 

ACHIEVEMENT 

‘ A significant advance, 
leading to increased 
efficiency, in the : 
application of 
technology to a 
production .or 
development process in 
British industry or the 
production for sale of 
goods which 
incorporate new and 
advanced technological 
qualities ’ 


“ Slimline” division of ARC 
Concrete: Recognised for re- 
search and development of 
technology in precast concrete, 
in particular the production of 
reinforced concrete pipe in 
which glass flhre replaces steel 
as the reinforcing agent 

City Technology: Gains the 
Award for technological inno- 
vation in the development of 
oxygen sensors. The CTL 
oxygen sensor based on battery 
technology is a relatively cheap, 
simple and rugged instrument 
of excellent stability and sensi- 
tivity. Its main applications 
are in the fields of safety, 
energy conservation and medi- 
cine. 

Coles Cranes: This well- 
known engineering company 
receives the Award for techno- 
logical innovation in telescopic 
boom design. Its “OCTAG” 
(eight-sided 1 boom series of 
mobile cranes, incorporating a 
four section fully-powered boom 
claims 10 per cent more height 
and 30 per cent greater lifting 
capacity than conventional 
rectangular box boom cranes. 

LI Division-Battlefield Sensors 
Royal Signals and Radar 
Establishment: The Award goes 
jointly to LI Division-Battlefield 
Sensors and Plessey Opto- 
electronics and Microwave for 
technological innovation in the 
■research and development of 
materials and electrical 


circuitry leading to the produc- 
tion of pyroelectric infra-red 
detectors. Application of the 
technology includes the manu- 
facture of burglar alarms, gas 
pollution monitors and weather 
satellite radiometers. 

Edwards of Enfield: This com- 
pany gains the Award for 
advancing technology in the 
automatic han dlin g of non- 
ferrous metals extruded by 
hydraulic presses up to 7,000 
tons. Its extrusion puller, 
powered by linear motors and 
integrated automatic extrusion 
saw with overall microprocessor 
control, improves product 
quality, significantly reduces 
waste and economises in energy 
and manpower requirements. 

The Scottish Group of Ferranti: 
Tbe Scottish Group gains the 
Award for the development and 
production of a combined map 

and electronic display 

(COMED) for use In military 
aircraft. 

lustrous This company gains the 
Award for development and pro- 
duction of its 8000 series test- 
ing machines used for studying 
the mechanical properties of 
materials components and 
structures. Its microprocessor 
control application to material 
testing machines has simplified 
complex procedures enabling 
tests to be conducted with high 
accuracy, repeatability and 
minimal risk of human error. 

Laser-Scan Laboratories: Lnser- 
Scan is recognised for innova- 
tion in the design and 
manufacture of laser-based 
computer peripherals and 
systems. Its HRD-1 FASTRAK 
laser display digitizer has 
application in the field of 
cartographies and in the design 
of bank notes with significant 
cost economics. 

The Actuation division of Lucas 
Aerospace: This division gains 
the Award for technological 
Innovation in gas turbine engine 
re-heat nozzle and thrust 
reverse actuation systems. 

May and Baker: Recognised for 
technological innovation in the 
development and production of 
** FLAGYL ” (metroisrdazole) 
for use- in the treatment of 
anaerobic infections, with par- 
ticular application in post- 
operative conditions. 

The Mining Research and 
Development Establishment of 
the National Coal Board: The 
Award is made jointly to the 
Mining Research and Develop- 


ment Establishment and Salford 
Electrical Instruments for the 
development and practical 
application of a natural gamma 
radiation detector as an aid to 
the steering and guidance of 
coal cutting machines. 

Neolronics: This young com- 
pany gains the Award for the 
development and production of 
a fuel efficiency monitor, a light 
Portable self-contained unit 
wh.<ch speedily analyses essen- 
tial information on boiler or 
furnace combustion efficiency. 
It caters for solid, gaseous or 
liquid fuels and can be used by 
non-skilled personnel. 

Osel Offshore Systems Engineer- 
ing: Recognised for its develop- 
ment and production of one-man 
tethered submersibles. In the 
offshore oil industry these 
vessels, incorporating single 
atmospheric systems, overcome 
decompression problems and 
time limitations imposed by 
“wet” diving. 

Plant Breeding Institute: The 
Institute is recognised for 
innovation in breeding the 
nematode-resistant roam-crop 
potato variety Maris Piper. Out- 
standing characteristics of the 
variety include its immunity to 
wart disease, resistance to 
gangrene, and its high yield 
and good quality. 

Plessey Optoelectronics and 
Microwave: See entry for LI 
Division — Battlefield Sensors. 
Royal Signals and Radar 
Establishment. 

Racal-Redac: Recognised for 
innovation in the application 
of advanced microprocessor 
technology in the production 
of a portable desktop computer 
aided design machine. 

The Derby Engineering function 
of Rolls-Royce: The Derby 
Engineering function gain the 
Award in recognition of their 
outstanding contribution to 
fuel efficiency in the operation 
of turbofan aircraft engines. 
Their RB2 11-524 series have 
demonstrated in successful 
service since 1978 superior fuel 
consumption economies over 
competing engines. 

Salford Electrical Instruments: 
See entry for the Mining 
Research and Development 
Establishment NCB. 

TSL Thermal Syndicate: This 
company is recognised for tech- 
nological innovation in tbe 
manufacture of translucent 
fused silica tubing for use in 
the manufacture of infra-red 
radiant heaters for domestic 
and industrial application. 








VVHV 






19 8 2 


19 8 2 


Lucas Aerospace 
Actuation Division wins 
Queen’s Award double 


Lucas Aerospace is proud to announce sales success which has resulted in the 
that its. Actuation Division has won two creation of 140 new jobs. 

Queen’s Awards this year-one for Techno- The Queen’s Award for Technological 

logical Achievement* and one for Export Achievement recognises the Division’s 

Achievement This is the second succes- development of the ‘ hot-end ’ re-heat nozzle 

sive year that the Wolverhampton-based and thrust reverser actuation systems for 

Division has been among the winners, hav- the Turbo-Union RB 199 engines which 

.ing been honoured with a Queen s 'Award _ power the multinational Tornado all- 
far Export Achievement in 1981. weather combat aircraft, now in quantity 

The Division, which employs 1,700 production for the British, German and 

people, designs and manufactures hydraulic Italian Air Forces. The development of 

and pneumatic actuation systems for civil these systems extended technology beyond 

and military aircraft, gas-turbine engines, the existing limits of knowledge, and repre- 

and missiles, and is a world leader in its - sent s a triumph for the Lucas Aerospace 
field. engineering team. 

The Queen’s Award for Export Achieve- 
ment is in recognition of a 274 per cent 
increase in the Division’s overseas business 

during the past two years — a remarkable Aiacas industries Cos^any 

Lucas Aerospace Limited, Shirley, Solihull, W est Midlands, B90 2JJ. Tel: (0902) 78238L 

Telex: 338217 LUCARO G. 


Lucas Aerospace 


t 


i. A. 


J 







Companies and Markets 


COMMODITIES AND AGRICULTURE 



UK maintains hard line 
at farm price talks 


BY LARRY KUNGER IN LUXEMBOURG 


THE . EUROPEAN Com- 
munity’s Agriculture Ministers 
last - night resumed their 
marathon farm price 
negotiations with little indica- 
tion that they were prepared to 
significantly shift their hard 
line stances on a wide range 
of contentious 

Aware that their talks are 
stiU overshadowed by Britain's 
refusal to ratify any new farm 
Ptite pact until a satisfactory 
solution is agreed on limiting 
thO UK’s EEC budget contri- 
butions, the Ministers were 
playing their negotiating cards 
close to their chests. 

British officials made it clear 
that the UK was not prepared 
to make any Immediate major 
concessions. 

In anticipation that Britain 
might come under pressure to 
demonstrate a greater flexibility 
in response to the EEC-wide 
support for its stand' over the 
Falkland Islands invasion, 
officials were quick to declare 
that, while the UK was “very 
grateful" for EEC solidarity 
over the Falklands' crisis, the 
farm price talks were an 
entirely separate issue. 

On the other hand, British 
officials were equally keen to 


demonstrate that Britain 
intended to negotiate seriously 
’towards obtaining a “strong 
agreement on farm prices" in 
parallel with the budget talks 
and despite its preoccupations 
with the Falklands dispute. 

The most encouraging view 
of the current talks, which are 
expected to continue through 
tomorrow, came from Herr 
Josef Ertl, the West German 
Agriculture Minister. 

Herr Ertl said, after lunching 
with Mine Edith Cresson, the 
French Minister, that with jast 
a “little flexibility” the 
Ministers could agree on new 
price levels and acceptable 
adjustments in the EEC’s Agri- 
monetary, or “ green " 

currency, system. 

The European Commission, 
in its latest compromise plan 
set before the Ministers, pro- 
poses a general rise in farm 
prices of about 10.5 per cent 
with substantial “ green 
money” revaluations for some 
countries. 

The latter proposal is being 
resisted by both Britain and 
West Germany. Revaluations, 
while tending to keep shop 
prices from rising, mean a 


Way clear for U.S. 
stock index futures 

BY NANCY DUNNE IN WASHINGTON 


THE KANSAS CITY Board of 
Trade has failed to get a tem- 
porary court injunction to halt 
approval of the Chicago Mer- 
cantile Exchange’s contract. It 
was expected that the contract 
would be granted by the Com- 
modity Futures Trading Com- 
mission and trading would start 
today. 

The MERC will be the second 
American stock index futures 
contract, based on Standard and 
Poor's 500 stock index and the 
one most industry insiders 
expect to achieve the highest 
volume of sales. 

The contract would follow by 
two months the value line stock 
index contract successfully in- 
troduced two months ago by 
the Kansas City Board of Trade. 

Kansas City officials had 
asked for a year’s delay in the 
trading of competing contracts 


corresponding percentage cut 
in any agreed guaranteed price 
rises for farmers. 

Herr Ertl said, however, that 
be felt that even an agreement 
on straightforward price levels 
was probably not possible until 
several contentious related 
issues were resolved. These 
include : new arrangements for 
Mediterranean produce such as 
wine, fruit and vegetables; 
special aid for high inflation 
countries such as Greece, Italy 
and Ireland; and aid for small 
dairy farmers. 

The difficulties surrounding 
these issues were highlighted 
by Abne Cresson, who said on 
her arrival last night in 
Luxembourg that new market- 
ing arrangements for wine “is 
a point that France cannot do 

without." 

Several northern EEC 
countries, notably Britain, are 
refusing to deal with the wine 
issue separately, arguing that 
this “Mediterranean product’’ 
cannot be hived off from the 
overall discussion on the whole 
range of southern agriculture 
production. 

This attitude is effectively 
blocking any agreement on 


wine, as there is a consensus 
among the member states that 
there simply is not enough time 
in the current discussions to 
deal fully with the overall 
question. 

• Mr Aliek Buchanan -Smitii, 
the British Minister of State 
for Agriculture, leading the 
British delegation while Mr 
Peter Walker, Agriculture 
Minister, was detained in 
London for a special Cabinet 
meeting to discuss the Falk- 
land’s crisis— said last night’s 
discussions produced an even 
greater range of disagreement 
in detail, than at the Ministers’ 
meeting earlier this month. 

While directly linking the 
farm price talks to the Budget 
question, Britain is anxious not 
to be seen as the only country 
preventing a new farm pact 

Mr Buchanan-Smith said 
feelings were running strong 
in the majority of the member 
countries over a range of 
difficult issues, not least, over 
the potential cost of any new 
measures. 

Britain, along with West 
Germany had asked the Com- 
mission to produce detailed cost 
estimates for the Council of 
Ministers to study today. 


Second day dip in 
London gold trading 

BY JOHN EDWARDS, COMMODITIES EDITOR 


because they had been the first 
to submit a proposal to trade 
futures based on a stock index. 

After the court decision Mr 
Leo Meiamed, special counsel to 
the CME. claimed that, the 
MERC had originated the idea 
of stock market index con- 
tracts ten years ago. The 
exchange made its research files 
available in court to prove they 
had not simply copied the con- 
cept from Kansas City. 

Mr Melamed said stock index 
futures contracts will provide 
investors with the. ability to 
hedge their investments as well 
as to discover the market price. 
Mr Michael Sweet, a public 
affairs specialist at the MERC, 
said the new contract will in- 
crease open interest in Stock 
Exchange futures and that 
Kansas City volume — an 
average 1.750 a day — will 
ultimately increase. 


TURNOVER on the London 
gold futures market dipped yes- 
terday on the second day’s 
trading to 1,478 lots of 100 troy 
ounces each, compared with 
2.336 lots on the first day. How- 
ever this was thought to be 
mainly a reflection of the very 
quiet conditions in the physical 
gold market, plagued by con- 
tinued uncertainty about the 
Falklands Islands crisis. 

On the bullion market the 
spot price for gold closed $5.25 
down at $342.75 a troy ounce. . 
The August position on the 
London futures market closed 
£2.925 lower at £201.575 a troy 
ounce after falling to £200.40 at 
one stage. 

Once again the bulk of the 
turnover on the new futures 
market came after the opening 
of New York trading just 
before 3.30 pm. London dealers 
are confident tba t a good 


arbitrage business is develop- 
ing, which may increase further 
next week when American 
docks go forward by an hour. 
The weakness in gold, un- 
certainty about the Falklands 
and continued lade of consumer 
inters t, kept trading cm the 
London base metal markets 
subdued yesterday. 

Hudson Bay Mining and 
Smelting of Canada confirmed 
it is lowering its price for zinc, 
sold outside North America, 
from $900 to $S60 a tonne. This 
is. in line with simil ar reduc- 
tions announced earlier tills 
month by several European 
smelters, which so far most 
integrated primary zinc pro- 
ducers, who control concen- 
trate supplies, have failed to 
follow officially. 

In New York, St Joe Minerals 
cut its domestic U.S. price for 
lead by 2 cents to 26 cents a lb. 


Sugar price 
at 2|-year 
low 

By Oar Commodities Staff 1 

THE DECLINE In world sugar 
values continued yesterday with | 
the Loudon daily raws price 
slipping £6 to £129 a tonne and 
the August . position on the 
London futures market ending t 
£5.125 down'at £134.675 a tonne.. 
The futures price was the 
lowest since the autumn of 1979. 

Dealers said the fall was 
influenced by reports of selling 
by Thailand and Florida pro- 
ducers while consumers Showed 
little buying interest. News of 
plantation strikes in Jamaica 
and flood damage to crops in 

Queensland . did little to 
strengthen the market, they 
added. 

In Mexico City meanwhile 
Geplacea, the group of Latin 
American -and Caribbean sugar 
exporting countries, blamed the 
EEC for the expected big 
1981/82 sugar surplus which is 
currently depressing the world 
market 

Tbe group’s marketing head, 
Sr Jose Lago said the EEC 
would have a surplus of .about 
4m tonnes this crop year and its 
"dumping policies” had. 
seriously lowered prices. 

Increase in 
cocoa demand 

By Our Commodities Staff 

BRITISH COCOA bean grind- 
ings rose 16.65 per cent in the 
first quarter of 1982 compared 
with the same period last year. 
The Cocoa Chocolate and Con- 
fectionery Alliance said yester- 
day that the January-Marrh 
grindings total was 25,335 
tonnes, up from. 21,718 tonnes. 

Dealers noted, however, that 
the rise was in line with market 
forecasts and had no impact on 
prices. They said they thought 
the increase represented a con- 
tinued switch from cocoa 
butter imports bade to beans 
due -to favourable price differ- 
entials. This meant that no 
significant increase in actual 
consumption was indicated, they 
said. 

After opening up to £5 a 
tonne down nearby positions on 
the London futures market 
rallied on trade price fixing and 
covering against “ short ” specu- 
lative sales, they said. At the 
close May cocoa was £4 up on 
the day at £945.50 a tonne. 

First quarter grindings in 
other major consuming coun- 
tries were announced at the end 
of last week. The West German 
and Dutch figures rose more 
than expected at 8.1 per cent 
and 6.7 per cent respectively. 


INTERNATIONAL AGREEMENTS 




M 


common 


BY BRlj XHMOUtlA IN 4J04EYA 


PROSPECTS for . early opera- 
tion . of . the proposed 8750m 
“common fund” to finance price 
stabilisation and export promo- 
tion of some .18 commodities , 
have receded further because - 
of disagreements with the 
present international com- 
modity organisations. 

. The disagreements were ’ 
serious enough for a pew round 
of talks due next month to be 
cancelled awaiting private con- 
sultations between the com- 
modity organisations, interested 
governments, and the Secretary 
General of the UN Conference 
on Trade and Development 
(Unctad) which is sponsoring 
toe fund. 

Agreement to create tbe fund 
was • readied two years ago. 
However, the March 31 deadline 
for its official ratification by at 
least 90 countries has been 
missed.. Only 22 countries have 
ratified toe Fund, although 82 
countries have initialled the 
agreement signifying willing- 
ness to. join It later. 

The 22 members will meet in 
May to decide on an extension 
of toe ratification deadline. But 
most other countries are now 
waiting to see the result of 
separate negotiations about how 
toe fund will function. 

Because of delays in ratifica- 
tion and difficulties concerning 
its operation, the fund- is un- 
likely to begin work until well 
into 1983- Although there is no 
question of unravelling the 1980 
agreement creating the fund, 
further delays may happen if 
Unctad's sixth three-year confer- 
ence due in June, 1983, fails 
to revive enthusiasm in North- 
South co-operation. 

Apart from delays in ratifica- 
tion stemming from red tape in 
many -developing countries, toe 
fund has become a casualty of 
President Reagan’s coolness 
towards Third World demands 
for financial and other aid from 
richer nations. . U1S. delegations 
in Geneva are consistently Row- 
ing down progress towards new 
international commodity agree- 
ments which would get help 
from the fund. Witiiout such 
agreements, toe fund would 
have little reason to become 
operational because its main 
functions, as laid down in 1980, 
are the financing of buffer 
stock operations to stabilise 
commodity prices and of 
schemes to boost Third World 
exr»orts. 

Hie U.S. is raising serious 
questions about the ideology 


underlying the tTnotad-. pro- martetoHtawIved, toe manager! 
gramme to reach international said. - • • - t T 

agreement- in -18 ; co&usoditie& - They wanted the fuwTs ru«<7 
whose centre piece is the to bo phrased In very generfr> 
Co mmo n Fund. Initial demands terms “ leaving tbe detailed prt' 


for a $6bn (£3.4bn) fund were visions to be negotiated tbetwcM 
scaled down in negotiations each organisation and too fund s. 
between 1976 and 19S0-to STBDm, management as equal partners- . 
of which 8400m would finance ! The reference to equal pari-f 


of which 8400m would finance 
buffer stock operations and the. 


nez& strikes -at the fund's rooM 


rest would pay for market because it was conceived as a 
research and export promotion, policy-maker superior lb tor. 
But the U.S, feels that the entire commodity organisations: 

Unctad programme- -should be Thai superior status ' is vsow- 
re-studied to prevent undue being contested by toe tom 


interference. with existing mar- 
ket mechanisms. 

■However, the most difficult 
problems in the path, of the 
fund's operation stem from the 


modify organisation managers 
The fund’s simporters toot thn - . 
making if just a helper- pimple 
meeting -- price stabitisatiur 
schemes set up hy eacborqaniss 


unwillingness of managers of tion will harm its ability 
the four existing international function because of its inabflitv 

mmummwAW*- ff/vo ...a* fKo vtooHc nTt ■CllCT' 


commodity agreements (for to meet tbe needs of ati sucL 
natural lubber, sugar; tin and organisations simultaneously, n 
cocoa) to cooperate .too closely could no longer act- as ar* 
with toe fund. • • arbitrator between conflicting 

An 80-nation group met in demands with authority tie 

non.,, i«i. numfh ... pnfflw its decisions.-' . A 


Geneva last month to discuss 
rules -by which toe Fund would 


enforce its decisions.:*: *■ . 
In addition to this -new 


operate but adjourned inconclu- iroversy. almost all too maitf 
sively after hearing the views elements concerning the ftnujJ - 


-FiemeiHS ccrircirruiiij.: nw-iHwi.-- 
of toe four commodity organisa- operations remain to be setz&L 
tion managers. - Negotiations on these are writ 

The managers’ chief com- behind schedule because thefl 
plaint was Jhat. Unctad secre- too should have been conclude* 
tariat suggestions about the before the March 31 dead Irntf 
terras under winch the organisa- Issues yet to bo settlt, 


tions would be associated with include rules to conduct ho? 


tbe fund were too detailed and 
restrictive. 

The suggestions paid insuffi- 


the fund's buffer stock as! 
export promotion opera tiort 
voting procedures, staff regu> 


dent attention to tbe pectriiari- tions and rules of associate 


ties of each organisation as well 
as toe special characteristics 
and operating practices of the 


with other international bod ; 
including - various commotj? 
agreements. I 


Grain subsidy warning 


WASHINGTON — The UB. may 
be forced to enter an export 
subsidy war because of the 
EEC’s agricultural policies, said 
Mr Thomas Hammer, who 
recently, resigned as Deputy 
Under Secretary of Agriculture. 
He told a meeting of the agri- 
culture subcommittee of Presi- 
dent Reagan’s Export Council 
that US. agricnwlraral exports 
mav decline in volume in the 
coming year. The EEC’s agricul- 
tural subsidies were one reason 
for the expected drop. 

‘The U.S. has too much at 
stake to let tbe EEC action go 
unchecked,” said Mr Hammer- 
- He cited the EEC’s increase in 
market share for flour exports 
in recent years and said the 


EEC had “been using *} p 
Treasury to undercut -pn* 1 ° 
Hammer represents. ad 
Miller’s National Pederati.cj 
their pending complaint- W of ■. 
Gatt over toe EEC’s use’ of* N ' • 
export subsidies. ... . .the ’ 
If the Gatt panel’s deteqoio- 
tion' is inconclusive _fe 'ot~L 
favour of the EEC. then * i cnufcj 
have a serious Impact otf ftifti-rl 
international trade, wj 

Hammer.- -i ‘a 

A decision by the Cq^pae C || 
against the U.S. could result irM 
the TL5. withdrawing from tfc'Jfi 
Gatt subsidies code, he said. 1 
Another possibility wddid be* 
for toe U.S. to seek the eara 
treatment for agricultural 
dies under Gait as now- exists 
for industrial product;. 


BRITISH COMMODITY MARKETS 

Tl A Cl? Tk/nTT 1 A T C Aluminium — Morning: Cash ES63. 

dAjL JVlXL 1 ALO three months £586 85. 84.5. 85. Ker 


BASE- METAL PRICES ware mixed in 
quiet and routine trading on the London 
Metal Exchange. Copper moved in a 
£5 range prior to closing the late Kerb 
at EB36.75. while lead was finally £332.5 
and Zinc C413.S Rumoured support 
buying by the butler stork manager lati 
tin at £7.367.5 at tne close. AJuijilnium 
end«d the day at €584.75 and nickel at 
£3.112.5. 


COPPER 1 

Official 

1+ or. p.m. 

; - [Unofficial 


£ 

1 £ 

1 £ 

Cash 

857.5-8 — 4 

I 857.5-8.5 


687.5 

4 

: 8S7-.5 

Sattlem't | 
Cathodes : 

858 

[-4 



855-4 

'-5 

| 853-4 


883-. 5 

' — 4 

1B81. 5-2.6 

Sattlem't 1 

854 

{ — 3 

1 “ 

U.S. Prod, 

— 


1 *74-8 


Aluminium — Morning: Cash £563.5: 
thrBe months £586 85. 84.5. 85. Kerb: 
Three months £534.5. 84. 84.5. Alter- 
noon: Three months E583. 82. 81 . 80. 
81. 81.5. 82. 84. 84.5. Kerb: Three 
months £585. 84.5. Turnover; 25.3CO 
tonnes. 


553.0. 556.0-549.0: July 550.0, 552.0. 
535.0-548.0; Oct 521.0. 523.C. S24.G- 
519 0; Dec 522.0. 525.0. 525.0-520.0: 
Mar 523.0. 526 0. 5Z7.0-523 0: May 

520.0. 531.0. 533.C-52SC: July 537.0. 
5«.o. 542.0-540.5: Oct £23.0. 544.0. un- 
traded. Sales: 3C6. 


; NICKEL j a.m. + or' p.m. + or rfinTTF * 

! official ; — (Unofficial — LUr r LL 


Amalgamated Metal Trading reported 
that In the morning cash higher grade 
traded at £858. 57.5; throe months £888. 
87.E. 87. 87.5. Kerb: Higher Grade: 
Three months £867. 86.5. 86. Afternoon: 
Higher Grade: Three months £884. 84.5. 
85. 86.5. 87. 87.5. Kerb: Higher Grade: 
Three months £886.5. 87 87.5, 83, 87.5. 
Turnover: 29.100 tonnes. 

a m. +or^ — pTriT j+"or 
TIN Official - Unofficial' — - 

1 

High Grade £ . £ ' £ _ £ 

Cash 1180-5 *-12.5, 1180-5 +5 

3 months' 7370-80 : + 10 , 7365-60 -9.5 

SetrJom'ti 713B +10' — 

Standard 1 

Cash .1 7150-5 -12 .b! 715041 1-5 

Z month* 7365-75 +5 ■ 7355-60 [—9.6 
Sattlem't! 7135 ; +lQl - 

Straits EJ 1629.36 +0.01: — 

NawYorid - ' 1 

Tin— Morning: Standard: Cash £7.130. 
33, 40. 3S; three months £7.370, 65. GO, 
65. 70. High Grade: Three months 
£7.360. Kerb: Standard: Caeh £7,135: 
three months £7,355. 60. Afternoon: 
Standard: Cash £7.120: three months 
£7,251. Kerb: Standard: Three months 
£7 260, 66, 68. Turnover 1.775 tonnes. 

a-m. + orl ~p”n». + or 

1 fah official — Unofficial *— t 

£ £ i £ £ 

Cash 519-5-20 + S.5, 318-9 +2.5 

3 months 333.6-4. +4.25 332- .5 1+2.76 

Eettlem't. 320 +E.5i — ] 

UAJSpOt - ' Li?®-.*? _L-j- - 

Load — Morning: Cash £320.5. 20: 

three months £333.5. 34. Kerb: Three 
montfi9 £333.5. Afternoon: Three months 
£332.5. 32, 33. 32.5. Kerb: Three months 
£322.5. Turnover: 23,175 tonnes. 

a.m. '+"orj p.iiiT pf^or 

ZINC l Official | — [unofficial) —1 

j £ £ ( ~£ I £ 

Cash. 415-.6 --2 . 415-7 +3.26 

3 months] 418- 5 +2 418.5-9 +2J5 

S’mant ...) 415.6 + 2 - 

Primw'tai - . 1 ? 5 !. 

Zinc — Morning: Cash £415.5; three 
months £416 5. Kerb: Three months 
£419. 18.5, 18. Afternoon: Throe months 
£416.5. 17. 17.5. 17. 18. 18.5. 19. Kerb: 
Three months £418. 18.5. Turnover: 
13.100 tonnes. 

Aluminm a.m. + oq., PjJ*}- , + ° r 

Official — j Unofficial — t 

£ ~ £ £ £ 

Spot 661.5-3.5. +J5| 5633 +5.5 

S months 684.5-5 ] + .5 j 584.5-5 ,-6.76 


INDICES 

FINANCIAL TIMES 

Aprif 2^ApriiifrMontli agofYear ago 

242.80 ! 843J7~: 245.49 I 260.91 
(Base: July 1. 1852-100). 

MOODY'S 

April 13 April IBMorttft agtfVcaa ago 
897,3' 993^9; 997,5 ~\ 1113,2 
(December 31. 1931—100) 


Spot 3045-50 -15 3056-8 ; -3 

3 months: 3110-5 ;-5 | 3116-8 +4J 

Nickel — Morning: Cash E3.CS0: three 
months £3.120. 15. 12. 10. Kerb: Three 
months £3,110. Afternoon: Three months 
£3.120. Kerb: Three months £3.110. 15. 
Turnover 6t8 tonnes. 

* Cants per pound. ± MS par kilo, 
t On previous official dose. 


SILVER 

Silver was fixed 18. 4p an ounce 
lower for spot in the London bullion 
market yesterday, at 4G6.2p. U S. cent 
equivalents of the fixing levels were: 
spot 719.1c. down 28.4c; three-month 
748.2c, down 28.8c: six-month 773.5c. 
down 28.6c; and 12-month 826.4c. 
down 28.6c. The metal opened at 
408*4Cdp (720-725C) end closed- at 
4 07-410 P (720- 725c) . 

silver Bullion + or; L.M.E. + or 
per fixing — p.m. ( — 
troy oz. price [ UnofficTj . 

Spot.. 406.20p j-18.4] 407J3p j— 9.5 

3 months.419.80p f-i8.6| 420.35p- 10.2 

6 months.434.35p Lia.ll - I 

12month c461.60p *- IMj — i 

LME— Turnover 128 (114) jole of 
10.000 oz. Morning: three months 
422.0. 21.0. 21.5. 20.0. 19.S. 20.0. Kerb: 
untraded. Afternoon, three months 
422.0. 22.5. 20.5. Kerb: three months 
420.5, 20.0. 18.0, 19.5. 20.0, 193, 19.0. 


COCOA 


Futures opened steadily on lunher 
trade end commission house short- 
covering but gains were pared and 
prices drilled lower on a lack ol 
follow through. Actuals business was 
a gain scarc e, reports Gill and_Duf!us. 

Yes’rday's + or I Business 
COCOA Close — j Done 

April 906 35 +6.6 1 — 

May 945-46 +4.0 949-35 

July 980-81 +2.5 ! 966 72 

Sept 1013-13 J+3.5 !1018-05 

Dec 1054-55 + 2.5 ! 1069 48 

March 1085-84 -+1.0 1 1090-84 


Linked to a limit-down close in New 
York Robusras opened £20 lower, 
reoorts Drexel Burnham Lambert. Trade 
support inspired a short-lived recovery 
belore additional commission house 
selling extended losses. Short-covering 
towards the close achieved a better 
finish in nears while torwards were 

neglected. _ 

lYesterday'V 

COFFEE Close + or 'Busmess 

I 1 — J Done 

£ per tonnel ■ 

May 119798 1—13.5' 12 01 -85 

July ' 1132-25 —17.01130-13 

Sept. I 1086-88 —16.6, 109B-B4 

Nov i 1080 84 1—7.0 11085-73 

January*...! 1076 78 —9.5 j 1082-78 

March ! 1074-76 -3.0 1075-72 

May i 105 0-80 1—5.0 ! l070 

Sales: 5.251 (3.329) lots ol 5 tonnBs. 
ICO indicator prioes for April 19: 
(U.S. cents per pound): Comp, daily 
1979 121.23 (124.21); 15-day average 
124.13 (124.12). 


GAS OIL FUTURES 

A weaker opening was tnllowod by 
a rally to the highs on the strength 
of physicals. The market lell on con- 
tinning hopefulness about an agreement 
on the Falklands and signs of an 
eBsier physical msrket, reports Premier 
Man. 

u..ih Yest'day , s“'+ orT~Bustness 
” ontt1 • I close - j Done 

8U3, I " 

per tonne. 

April 274.6 L_a.76[275.a-74.50 

May. 272.00 -6.0 1277^-72.00 

June I 268.00 -9.0 I276.00 j37.76 

July 268.00 —7,5 Q7&.0Q-87.6Q 

August 288.26 -9.76l277.00-67.76 

Sept,... i 272.00 -10 27B.60-7LOO 

Oct. | 276.00 1-9.001261.00 

Nov. 283.00 > — A-.DDj - 

Dec—, i 277 .60 J— 13JB( - 

Turnover: 2.507 (1,677) Jots of ICO 
tonnes. 


GRAINS 


through the day and closad firm. Lewis 
and Post recorded a May fob price 
for No. 1 RSS in Kuala Lumpur of 
209.5 (207 j) cents a kg and 
SMH 20 182.0 (same). 

No. 1 1 Yeat'r'y* Previous 1 Business 
R4LS. close close Done 


May.,...: S7J0-&8JKI 68.10-57.80: - 

Juno,. 68.70-68.30 57.00-68.20 68.00 
Jly-Sept H -90- 80.00 6B.28-68.S0j 60.10-68.00 
Oct-Dec 61.70-61 JO. 6O.IHU0.I0 6I.8O.6OJO 
Jan-Mar. 65.20-63.30 8UO-61JO. 65.60-E2JM) 
Apl-Jne M.ffi-fe.OD 82.86-65.00 64.SO-fe.BO 
Jly-Sept 66^0-66.60 MM-fAjM] 68.30-86.60 
Oct-Dec- 87.80-48.00 B8JW-8BJ0: 67JD-66.80 
J’n-Mch' 68.40-69. 80' B7A0^8.08: 69J0^9.!0 

Seles: 6S (179) lots of 15 tonnes. 
143 (nil) lots ol 5 tonnes. 

Physical dosing prices (buyers) 
worn: Spot 56.75p (55,S0p): May 54J5p 
(53.25p): June 55.00p (54.C0p). 


SOYABEAN MEAL 

SOYABEAN OIL— Closing prices and 
business done (U.S. S per tonne): 
June 488.50-89.00. 488.50-67-50: Aug 

490.00- 90.50. 491.50-89.00; Oct 495.00- 
95.50. 496.00-93.50: Dsc SOO.pO-OO.IO, 

500.00- 98.00; Feb 505.50-07.00. 506.00- 
05.00; Apnl 510.50-11.00, 511.00-09.50. 
Turnover; 153 (225) lots of 25 tonnes. 

The market opened unchanged and 
found . commercial support, reports 
T. G. Roddick. Prices tinned slightly on 
mixed buying. 

Oil futures opened higher but 
drifted on weaker Dutch cash markets 


before rallying on fresh 
house buying. 

commission 


Yesterdys-f- or 
Close | — 

Business 

Dons 

April 

£ \ 
per tonnej 


June.. 

August.. 

October-... 

Dee 

Feb 

I56.7fl-25.8i +0.66 
135. 70-26,8. +0.46 
U6.7048.8 +0JHJ 
lS9JQ^a.7.+OJ8 
141.6M2J +0^6 

1R.7MS.9D 
126.80-25^0 
IM.BD-56.2B 
159.00 -58 .60 
141^0 

April 

142.IHM4J. + 0.M 



Sales: 122 (130) lots of 100 tonnes. 


SUGAR 


WHEAT ! BARLEY 

{Yasterd'ye; +or • Yest'rd'ysi -f-or 
Mnth 1 close I — - close : — 


■waren 1 w arw-w* .. ‘"r "m " 1 tract 

May 1103-03 —1.0 J 1105-99 Mnth 1 close \ — ; close — 

July J 1113-20 L 3.5 I _ — ■_ ; ; 


The market opened lower end 
declined further. When New York 
opened slightly, above the limit decline 
half the losses were recovered, reports 
C . Czarnikow. . 

No. 4 Yesterday! Previous Business 
Con- - close I close done 
tract 


StrlsaV 1.776 (2.619) lots of 100 
tonnes 

ICCO — Daily price fob Apnl 20: 78.59 
(78.81). Indicator price lor Apnl 21: 
79.01 (78.80). 

WOOL FUTURES 

LONDON NEW ZEALAND CROSS- 
BREDS— -Close (in order: buyer, seller, 
business). New Zeeland cents per kg. 
May 2B&. 332. 391: Aug 336. 411, 411; 
Oct 410, 413, 411; Dec 411. 413. 416- 
412: Jen 411. 414. 417-412; Mar 418. 
420. 418; May 425. 430. 423-427; Aug 
437. 440. 441-448: Oct 443, 445. 443. 
Salas: 33. 

SYDNEY GREASY WOOL— Clou a (m 
order: buyer, seUer, business). 

Australian cents per kg. May 552.0. 


DOW JONES 


DOW I April j April 
JOmu 19 16 


lonth ! Year 
ago ago 


Spot >129.69 1128-15 ■ 124.55407 .01 
Futr’s 129,10 ! 15 1.95 130 .03 418,fe 
(Base: December 31 1974=100) 

REUTERS 

April aOiAprif 19] M'nth aaO |Yaarag b 
15 99.0 1 1609^ 1592^ j 1669.5 
(Base: September 18. 1931-100) 


May.. 1 118.45 1— 1.60 111.55 j-O.80 

July J 122.40 -1.36' - — 

Sept.! 107.80 I — 0JJ5- 103.45 '—0.10 

Nov.,' 111.65 — O.JOI 107.35 — 

Jan..' 115.60 - 111.35 ' - 

Mar,! 119.20 1—0.05 114.85 1 _ 

Business done— Wheat: May 119770- 
118 45. July 123.40-122.40. Sept 107.80 
only. Nov 111. 70-111.50. Jan no tredBS. 
March no trades. Sales: 428 lota of 100 
tonnes. Barley: May 112.25-111.55. Sept 
103.50-103.45. Nov 107.25 only. Jan no 
trades. March no* trades: Salas: 47 lots 

of ICO tonnes. 

. HGCA— Locatonal ex-farm spot 
prices. Feed bailey: S. East 111.00, 
S. West 110.30. W. M'ds. 110.20. 
N. West 111.50. The UK Monetary 
Co-oflicient lor the week beginning 
Monday April 26 (based on HGCA cal- 
culations using 5 days exchange rates) 
is expected to remain unchanged. 

The market opened lower. Long 
liquidations and hedge selling foiled 
any attempts to rally old crops. New 
crops eased in light trading; Aell 
reports. 

LONDON GRAINS — Wheat: U.S. 

Dark Northern Spring No 1 14 per cent 
May 116.75, June 115.75. July 115.25 
transhipment East Coast sellers. Maize; 
French second half Aon! 135.53 tran- 
shipment East Coast sellers S. 
African White/Yetlow optional May/ 
Juno 9DS0. Barley: English Feed fob 
May 118.00 paid East Coast. Rost un- 
quoted. . . 


£ per tonne 

May 1 128.8049,00: 186.60-85.76: ISBJfi- 26.60 

Aug «... 1M 1 66-54.7«1B9.76-39.B6;i40.00-55 JJO 
Oct.,... 168 M 5B,G0[ 144.00^4.60 144.76-88 JS 

Jan [ H— 50-48 .75' 148.00-50.00 — 

March 160.10 -60.20: 164.2544.46 1M.B5 -48.26 
May. ,.,'168.76-64 ,00:167 .00-07.75 166.00-62.00 
Aug — ;iM.0060.00tlB2.0044.00| 180.00-68.00 
' Sales:' 8.288 (7,203 )~ lots of 50 tonnes 
Tate and L«jje delivery price for 
granulated b^Ta wh'.te. sugar waa 
£374.00 (same) ■ tonne fob for hdme 
trade and £236.00 (£242.50) lor export. 

International Sugar Agrement (U.5. 
cents per pound) fob end stowed 
Caribbean pons. Prices for Apnl 19: 
Daily prlco 9.18 (9.82); 15-day 

average 10.28 (10 38). 

LONDON DAILY PRICE^-Raw sugar 
£129.00 (£133.00) a tonne elf April -Msy- 
Juno shipment. Whits sugar daily 
price £153.00 (£159.00). 


POTATOES 


LONDON POTATO FUTURES— ■Profit- 
taking atier a steadier 'opening put all 
values lower, etfhough most positions 
lifted off the lows towards the dose, 
rapana Coley end Harper. Closing 
prices: Nov BS.OO, -2.00, (high 68.00, 
low 84.40): Feb 76 J00. -2.30. (high 
79.00. low 76.00). April 87.50. -2.70, 
(high 90.50. low 87.00); May 98.00. 
—2.40. (high 101.0a low 97.00), 
Turnover: 595 (658) lota of 40 tonnes. 


RUBBER 


The London physical market opened 
slightly steadier, attracted little interest' 


COTTON 


newed buying of numerous quaimn 
developed, and business was decidedly 
brisk. North American end African 
supplies were wanted, as wen as a 
variety of Middle Eastern styles. 

★ 

GRIMSBY FISH— Supply good, 
demand good. Prices at ship's side 
(unprocessed) per stone: shelf cod 
{5.80- £6.50. codlings E3.00-E4.90; large 
haddock C5.40-EB.20, medium £4 40- 
£5.49. small E2.20-E2.00; medium plaice 
£6.00. best smell £4-20- E5. 00; sk-nned 
dogfish (medium) £850; lemon so<o 
(large) £9.53, (medium) £8.50; rockfieh 
£3.60: aaittre Cl. BC- £2-50. 

MEAT/VEGETABLES 

SMiTHFIELD — Pence per pound. Beef: 
Scottish killed sldee B4.0 to 88.0. 
Veal; Dutch hinds and ends 123.5 to 
128.Q. Lamb: English smeK (new 
season) smatl 11T.0 to 114.0. medium 
115.0 to 1S.0. heavy 110-0 ro 110, Q; 
imported; New Zealand PL 64.0 to 66.5, 
PM 64.0 to 65.0. PX 64.0 to 6S.0. 
Hoggets: English 94.0 to 101.0. Ports: 
Eno4J»h, under 100 lb 40.0 to 66.0. 
100-130 ib 46.0 to 55 A 12D-18Q it 41.0 
to 52.0. 

MEAT COMMISSION— Average fat- 
stock prices at rep rest ntatfva markets. 
GB— Cattle 100.82p per ko Iw (-2.12). 
UK — Sheep, 226.69p per kg eat dew 
(-3.32). GB— Plga 72.78p per kg Iw 
{-Zt 3). 

English Produce: Potatoes— Per 55 lb. 
White 3.60-4.10. Red 4.00-4.50. King 
Edwarda 4.00-5.00. Mushrooms— Per 
pound, open 0.50-0.60, closed O.6O-O.8O. 
App les Per pound. Bram/ay 0.20-0.30. . 
idared 0.16-0.22. Pears— Par pound Con- 
ference 0.16-0.30. Lettuce— -Par 12. 
round 0.80-1.40, Cos 10s 2.50. Onions— 
Per 65 lb 40-80 mm 1.50-3.00. Carrots— 
Per 26-28 lb 2.50-2B0. Bsetroots-'Per 
28 lb, round 1.00-1JS). long 1.20. 
Swedes -Per net 0.90-1.20. Rhubarb- 
Par pound, outdoor 0.06. Leeks — Per- 
10 lb T. 2D- 1.40. Parsnips— Per 28-28 I b 
1.60-2.00. Turnips— Per 26^8 lb 1.00- 
1.40.- Cucumbers— Per package 2.00- 
3.00. Greens— Per 30 lb Kent 2.00-3.00, 
Tomatoes— Per pound .D/E 0.35-0.45. 
CavriKlawers— Per 16-24 Kent 4.00-6.00. 

COVENT • GARDEN— Prices for the 
bulk of produce in - starling per 
package except where otherwise stated. 
Imported Produce: Oranges— Sparne: 

15 kg Navels 42/130 4.60-5.50: Cyprus: 

16 kg Valencia Laces 3.80-4.60; Jaffa: 

20 kg Shamouti 50 5.50. 00 5.70, 75 
6.60, 88 5.60, 105 6.45. 123 6.20. 144 
5.20, 168 5. IS: Moroccan; 16 kg 

Valencia Latee 48/113 3.50-6.00. Topaz 
—Jaffa; 53/90 5.29-6.00. Lemons— 
Cyprus: 10 kg 4.00-4.80; Spania: Trays 
5 kg 40/S0 1.20-1.60: Jaffa: 16 kg 90/105 

4.50- 4.80; U.S.: 17 kg 5.00-6.00; 

Outspan: 15*2 kg 80/120 4.60-5.50. 
Grapefruit— U.S.: 16-17 kg Texas Ruby 

5.00- 6.00. Florida Ruby 7.50-8.00: 
Cyprus: Small cartons 17 kg 3.20-3.60; 
Jaffa: 20 kg 27 4.25. 32 4.45. 36 4.46, 

40 4.65, 48 4.85, 56 4.95. 64 4.75 75 
4.50. 88 4.00. Ugli- Fruit — Jamaican: 
14/56 6.00-1O.C0. OrUmkrues Jamaican: 
46/126 5.00-7.50. Apples— French: 1 

Golden Delicious 9 kn 3.40-4.20, 18 kg 

6.50- 8.40: Now Zealand: 18 kg Cox’s 1 
Orange Pippins 12.50-13.60. Golden 
Dekcious 9.00: Chilean; 18 kg Granny 
Srmih 11. CO-12.20. Stalking 10.00-11.00: \ 
S. African: 18 kg Golden. Delicious 

10.00- 11.00. Siarkmg 11.00-11.50; U.S.: l 
18 kg Bod Delicious 9.00-13.50; French: I 
Starkcrimaon 10.00-11.00. Pears— < 


PRICE CHANGES 

In tonnes unless otherwise slated. 

I Apr. 20 !+ or \ Month 
' 1982 : — i ago 


Metals 

Aluminium -£810/813 £810.-815 

Free MKt. 8983/1016 5588:820 

Copper. ; 

Cash h grade... £B58 -1J5 £845 

3mtbs._ ,£887.25 '~Z £872.75 

Cash Cathode— CM3 -0.5 £84U5 

3 mths.... £882 —2 '£868.85 

Gold troy OZ .. -.'8342.75 —5^8 6329:5 

Lead Cash £318.6 +2 J. JCSSSJSS 

Smths. £333£5 :+2,75£343JS 

Nickel '£3926 ......... '£3824 

Free mkt..„ 245«275c '565(28 Bo 

Platln’mtr of y £260 _.!£260 

Freemkt-_.._ £188.16 —4^S £173.80 
Quiokall vert - S 370.-380 - S 8398/400 
Sliver troy o»_. 406.80^ -18.439B.95p 

3 mttia. 419.80jn -ia.6^12^0p 

Tin Cash _.>£7i32^ [+5 ^7335 

3 mths ,£7358 1— 9.8 ;£7452 J 

TUngsten22.0 lb|81 14 JZ9 | (8124^8 

Wolfrm22.<HKu[8102f107 '8111/118 

Zinc Cash. £416 +5.SS£429 

« mths X418.75 +8£6?e433.75 

Producer*. _.|S860{900 *900 

Oils ,1 | I 

Coconut (Phm 6497 Ai \+tfi 1*480 


Groundnut 6683y 

Unseed Crud« : 
Palm Malayan IBSOOv 
Seeds I 

Copra Ph lip _.'8330y 
Soyabean (U.6018269.5 
Grains 

BarleyFut. Sep £103.48 

Maize £135.50 

Wheat FutJuly £122.40 
WoJIHardWnq t 


i.6 18607 J3 


, .]8S30 

269.5 +0^ 18966.76 

.103.45 -o.iolfiiiajo 

135.50 £133.00 

122.40 -l^lEllB^B 

t r * 


GOLD 

GOLD CONTINUED, to weaken 
in toe London bullion market 
yesterday, falling S5j to $3421- 
$343i. Trading was quiet, hut 
remained nervous about toe 
Falkland* crisis. The market 
opened at S346-S347, toe highest 
point touched during the day. 
and gold was fixed at 5345.75 in 
the morning and $343.00 in the 
afternoon. It touched a low of 
5342-$343. 

In Paris the 12J kilo gold har 
was fixed at FFr 69,200 per kilo 
($345.09 per ounce) in the after- 
noon, compared with FFr 69.490 
'S346.37) in the morning, and 
FFr 72,000 ($356.37.) Monday 
afternoon. - • 

In Frankfnrt the 12* kilo har 
was fixed at DM 26,845 per kilo 


April.20 


(5348 per ouncel agaiopt* 
DM 27,820 ($358) previously, and! 
closed at SJ44fSW5i. compare?’ 
with S356s-$357J. - • 

In Luxembourg the 12J kilot 
bar vra*; fixed at the equivalent.* 
of $346.50 per ounce, .against' • 

. $358. ; 

In Zurich gold finished at 
*342-5345. compared $555* 

S 35 S. 

LONDON FUTURES 

. , cwsa , — i Dona 

! £ par troy • 
ounce ! 

August....: aiiB-I.HI-2.525 MSAO-Ojfil 
Sept* mb' r, 2MJ8-3J0 — 3.ia: 205.2S 3.io — 
Octobar -. 2fe 50-5.60 -3.45 807.5 0.5,10 , 
Turnover: 1.478 (27326) lots -of“l00 
troy ounesa. 


April 16 


Other 

commodities 
Cocoa tfilp't* £1,006 
Future May £945.5 
Coffee Ft' July £1122.8 
Cotton A. Index 7115c 
GasOil May ....8272 
Rubber (kife;... 56.78p 
Sugar . (Raw).... £129yr 
Wooft'ps 64s kLj401p Kilo 


+2 pi 1055 
+4 P10443 
r-17 -S1236.5 

70.65c 

-6 6263 

+ l_25|33p 

—6 piSB 

—7 |3S2pkJlo 


t Unquoted, x Msy. v June, y April- 
May. u May Juno, t Par 76-fb flask. 
• Ghana cocoa, n Nominal. $ Setts r. 


Chilean: 18 kg Packham's Triumph 

11. 00- 17. 50: S. African: 15 kg Pack- 
ham's Triumph 8.60^10.00, Cornice 
trays 3S kg 3.50-3.80. Baum Bose 
34 lb 8.30-9.00: Italian: Per pound 
Paasacrassane 0.16-0.W: Oucchr 12 kg 
Conference 7.80; Airatralian: 28 lb 
Willlama - Bon Chratian 8.00-8.50. 
Grapes— S. African: Waltham Cross 
5.60. Barlinka 5.30-5.40; Chilean: 5 kg 
Thompsons 6J0-6J0. Strawberries — 
Spanish; 8 os 0.25-0.35: Italian: 8 o'z 
0.35-0.40; U.S.: 12 oz 1_V. Melons— 
Senegal: Chareptaia 7/12 12.00: S. Afri- 
can: Whire 4.00-6.00: Chrlezg: 15 kg 
green 8,00: Gueumale: 10 kg whin 
4.CO-5.00; Colombian: 10 kg green 4.80- 
6.00; Brazilian: 10 kg yellow 6.60-7,00. 
„ Watar-melone— Puerto Rican: 10 kg 

8.00- 9.00. Pineapples— Ivory Coast: 
Each 0.35-1.00. Bananas— Colombian: 
40-lb boxes 8B0-9^0. 


EUROPEAN MARKETS 


UVStPOQL — Spat - and Ctubtnant 
sales mounted to 318 tonn«e; Rs- 


_ PARIS. April 20 

Cocoo— (FFr per 100 kilos): May 
1038.50-1046. July 1076-1085, Sept 
1120-7139, Dec 1170-1185, March 1220- 
123a May 1235-1345, Jidy 1 SI -1280. 
Salas at caff: Nil. 

Sugar— (FFr par tonne): Jufy 1670- 
1685. Aug 1975- TWO, Oct 1GS-1680. 
Nov 1655-1665. Dec 1677-1883. March 
1740-1745. May 1775-1785. Jufy 1ft16- 
1825. Seles vt call: 14. 

ROTTERDAM. Aonf 20. 
Wheat— (U.S. S per tonne); u.S. Two 
Dark Hart Wiiwar 13.5 par com 1-20 
April 205.50. May 202. Juris 201. U.S. 
Np Two fled Winter April 170. U.S. 
No Three Amber Durum Apnl /May 182. 
May 182. June 182; July 182, Aug 184. 
Sept -188. Oct ISO; Nw 192. U.S. No 
Two Northern Spring 14 per cent May 
188. June 188,50. July 186,50, Aug 187. 
Sept 188. Oct TB1.50, Nov ]B2£0. 


Canadian Western Red Spring May/ 
Sapt 204. 

Maize — (U.S. S per tonne): U.S. No 
. Tinea YeMow afloat Ctf Ghent 138. April 
13750. May 13S.50, June 135.50, Jtriy/ 
Sapt 135.50, Ost/Doc 138, Jan/Mar 
14<t severe. 

Soyebaans— (U.S. $ per ipmw): U.S. 
Two YeHow GuMportj April 28350. 
May 262. June 262.50, July 364.50, Aug 
265. Sept 265.50. Oct 202.25. Nov 
783 25. Dec 266. Jan 371. Feb 235. Mer 
278 sallere. 

Soya meal — (U.S. S per tonne): 44 per 
cant pro tern untoading 241. afloat 236/ 
235, June 237.25 traded; unloading 245, 
afloat 237. April 225. May 227.60. Juno 
238. Aprif/Sepr 229. May/Sept 229. 
Nov/Mer MO sellers. Brazil Peftecs 
unloading' 252 J50 traded; anloadliw 253, 
afloat 2Sa April 241. May »0, May/ 
Smk 240. Nov/Mar a ell era. 


Grtd Bullion ifirte ounee) 

C|0«. — 'S3481V3431+. f£193.B. 194.3) 8347i S .M8J» 

Opening »_IS54«-347 (£195,5-196) '835B-359 

Morning fixing .. 8345,78 .(£195.3391 18356.75 

Afternoon fixmgjS343 (£193.567) 'f357 


Gofd 

Krugerrands ]835Zia-353i? 

1/2 Krugsrrand.JSiai V18BJ« 
1/4 Krugerrand..J592ia-93Mi 
Iris Krugerrand 183 7^4-38 

Maplaiasf !835S-353ia. 

New Sovereigns. 'S85-83 ig 
King Sovereigns. S9&97 

Victoria Bov® b«7 

French 20s_ 1677-87 

50 pesos Mexico iW21V4fc5 
iOU Cor. Austria. $331 tg -334 
520 Eagle* |54 38-443 


Coin* 

r£ log i a .200 ia) 

(£103- 103 1 E) 
(£32 Lj. 63 
t£21l|-22 
(£199 1« -8001a) 
(£47-4714) 

(£04 *2-55) 

(£54 Lg -55) 


1535814 3591+ 
,Br84Ji-I85l a 
1594-96 
638is-3Bl2 
8357-35812 
88412-85 
ISlOO-lOl 
8100-101 


(CSiBU-MOSt) !54Zai» -438 
(£187*4.18914) S3 58-340 is 
(£248 261) 5444-450 


(£?02 r -«5595J 

(£202.492) 

l£202.55Oi 


(£2G23iL203y 
(£l(K.lt-103 j 
(£5314-83*,, 1 
rfifllSi-aaiai . 
(£20ai4-20o, , 
f£47*jmj 4 |' 
r £56J8-37i 
i£06i2-57i 
i£44(«-49Jj-. | 

tfiMZSrflAcsjvi 
(£191ia-l92: tf , 
(£2511^-254^4 : 


Monday’s cTosing prices 

NEW YORK. April 19. 
PRECIOUS METALS and Copper sold 
• ofl sharply on- Indications that the 
Falklands situation would be resolved 
peacefully. Caffae collapsed from 
lurcher long liquidation and technical 
selling. Heating OH was under pres- 
sure from technical sailing - and easing 
ol tensions and finished limit-down. 
Livestock markets were mixed await- 
ing -two major government reports, 
reported Heinold. 

t tC ocoa — M ay 1596 (1586), July 

1585 (1585), Sept 1625. Dec 1687! 
March 1752, May T7S2, ' July 1825, 
Salas: 3,010. 

Coffee — “ C " Contract May' 130.00- 
130.90 (134.71). July 118.07 (122.07), 
Sept 113.92, Dec 112.30-112.70. March 
1 10 JS.1 10.50. May 110.00. July 100.00- 

110.00. - Sept 108.00. Sales: 3.910. 

Copper— April 68.40 (69.85). May 

68.70-68.75 (70.30), June ’ 89.80, July 
70.75-70.80. Sept 72.55. Dec 75.00- 

75.20.. Jan 75^5, March 77.40. May 
79.05. July 80.85, Sept 'K.25. Dec 

84.80.. Jan -86.25. Sales: 9.S00 
Gottorn— No. 2: May 66.10-56.20 

(66.24), July 68.05-68.12 (68.11), 

Oct 71.08-71.10, Dec 72.40-72.45. March 
74.10, May 75.15.75:50, July 76.15- 

76.75, Oct 76 JO-77.25.. Sales: 4,500. 

"Gold — April 341.5 (359.8). May 

302.7 (362.0). June 3*8 0-347.0; August 
353.5-355.0, Oct 361.0, Dec 389.0-371.0, 
Feb 378.2. April 386.7, June' 395.4. 
August 404.3. Oct 413.4. Dec 422 5. 
Fab 431.7. Sales: 65,000. ' 

0 range Juice— -May 111.15 (115.05). 
July 113.60-113.55 (116.00). Sepr 

116.90, Nov 117.70-117.90, Jan 119.25- 

119.50, March 120,75. May 122.35- 

122.50. July 123.76-124^5. Sept 125.25- 

125.75. Sofas- 1.000. 

•Platinum — Apnl 327.2 -(346.9), July 
334. 4J 35. 6 (354 4). Oct 343.4-343 8 
Jan 355.9. April 367.8. Salas: UB5. ' 
Potatoes (round whites)— Nov 78,2 
(77.9). Fab 89.4-895 (882). March 92.5. 
April 1045-105.0. SalBS:119. 

ISifver — April 714.5 (758.0), May 

716.0- 719:0 (762.0). June 726.0. July 

734.0- 736.5. Sept 751.0-7S3.0, Dec 

779.0- 783.0. Jan 789A Match a07.8 
.May 825.8. July 843.8. Sept 861.8. Dec . 
889.4, Jan 898B^ Handy, and Harman 

10500 SD ° l: 739 00 S8hl * : 

8ug«r— No. 11: May S.20-9.21 (9.34), 


f*|fY 8-41'9-« dO.12). Sepr .9^7, 1 

Marc ^ May! - 

11.22. July 11,45. ■ . f . 

Tin— 582.00-585.00 (583.00-585 001. ’A 
CHICAGO. Aprif 19. ;•} ; 
Lard — Chicago loose 31-25- -nom‘ i 
2150 offered f2 i.00). 1 

,n,m — ®° W — Ju n0 346. 5- ICG Gt t 
(^.8). Sept 3S7.5-3S8.5 (3783+- qI? I 
KO.O. March 381.7, June 

« UW “ < ^TT^ pri| 71.80-21^5, (71 60) J 
June 67.35-87.45 (G7.32). . Aunuii; 

83.20^3.35. Oct 81.80-61.85, Doc 
Feb ,62.50-62^5. April 62.77.‘ ,P ^ 0, JBL 
Uvs Hogs— -April 53.35-53.40 (53.37)/ 
S 7 - 5 *- 57 ** 157-42). July. 58.20.) 

August 57.40-57.50. Oct 55.30- 
55.10. Dac 55.50-55.40, Fab. 53.30-53 25 I 
June 51.40. . u - 

ItMaUe — May 278>«-Z7B‘j - - J27&J|.i ? 
jhily 288% -2684 (290). Sapt -2^; 
23 ^ 971 «- March 311-3101,. May 318^ 

Forte Bellies — May 78.46-79 DC; 

<78.02|. July 76.19-77.70 T78.CS): 

August 75.00-74.70. Feb - 71 ffi-7n 30! 
Meroh 71.50. May 72.00. Ju!jr7&Z5. r 
f Soyabeans— May 645-847' JBer.i: 

Aiiaaat’ 6581^ 

ST* Jan 67fl-- Ir 

March 692*-, July 714»,. ;. . 

/,l S ?! abGS !'' l Meai— May 187.8=167 e- 
(188 J). July 190.8-190 .6 . (181 1>.; 

S U,U8 ,L 1 f 1 - 8 ; ^ 19Q - 5 - Qr<r 193.5: 

Dec 196.0, Jan 188 0, -Mereh. 2fP n > 
202-5. May 205.(L206.b. - 

Soyabean OH — May 19 JS-ig -cl 
(19.35) July 19.96-1R93 

».45 JCLEO r - oJ 
20.55-3) 65. Doc 21^0. Jiin '21.15 5 
Mareh 21.38-21.45. 

377-3774 CSTPa). j,j|J 

5T^aS^ 431. SaPt 417 } 

5^riey-M»y 

2SWP - 0ct ^ 70 -^ 29 ^ 

c,f St. Lawrenc*. 

All 1 #17- 

•. cai ? 8 Der P° un ti ex-warehousri" 
Unless otherwise ciatod. "Saur tro-> 
flonce. 1 Cents per tror > oun^ : 
it Cants per 56- lb bushel. * Cantata ' 

SSC«n. per metric ton * 

«S per. i.ooo so (r. * Cant* 

dozen, fts per mnnc ton. • ••,. 













Financial Times Wednesday April 21 1982 


fund f* us. 

chemicals 


INTERNATIONAL COMPANIES and FINANCE 


" -• / 


Dow Chemical sees halt in 
downward business trend 


groups • BY PAUL B6TT5 IN NEW YORK • • i 

> York Staff . .DOW CHEMICAL, the second yesterday it was encouraged by there have been gains in pric-: 

CHREE MAJOR U.S. chemicals I ^ ses l U - S -- cfaemicals company Its latest quarter. The company ing. particularly In the U.S. 

Wmies report shandy lower *** « Pont * re P or ted yester- said the results were a suhstan- Although Europe increased its 

' > rmarter earnlras. reflecting aay a 15 ^®ht decline in first tial improvement on the last prices in local currencies, this 

General • <tumn in" tho ■ { * uar * er earnings. Profits quarter of 1981 when the com- continued to be more than off- 


, ‘ ^ rf -rgeaeral ■ slump in * the 
i: .. ^Kal business as a result of 
'>,'■& tfcession in the U.S. and in 
• ; -• ^l^r 5 Western marXetS; : 

i > biggest earnings decline 
**.«, ^.rfls imported by Union Carbide. 


dnyped to $l54m dr 80 cents panv earned $67m on sales of set by the strength of the U.S. 

a share op sales, of $2.78bn- Last $2.99bn. dollar. 

year- earnings were $180m or Mr Paul Oreffice, Dow's presi- — ^ 0 _, H 

98 cents a share on sales of - dent pleased to see — 2jito5S5Ss*5Sed!2!! 

$2.9bn. a halt to the sharp downward sPOOOiW Propucis snowed good 

First nnarter pamincic twc trrmrt in hiTcincMsa +tiat {hasu< gatos while the plastics business 


* Eure 

earnings ; 
doubled in j utilit 

first period j BY PETER MONT 

6y Onr New York' Staff 

■ • THREE FIXED in 

ciiiCORP, NEW York’s bonds were lauru 
largest bank, m a n a g ed to raise Euromarket yester 
earnings sharply to the first picked up further ii 
quarter of this year, but the stronger tone 
suffered a shrinkage to size i as i y ork bond m?rV ^ 


Eurobonds for Canadian 
utility and Union Carbide 


BY PETER MONTAGNON. EUROMARKETS CORRESPONDENT 

THREE FIXED interest dollar action shortly to trim the U S. 
bonds were, launched in the budget deficit below SIQObn 
Euromarket yesterday as prices and these expectations, coupled 
picked up further in the wake of with si «ns of a deepening ro- 
The stronger tone of the New cession to th'c UX. outweigh 


-. rfl 5^??o rted to. Union Carbide. First quarter earnings this trend to business that began to f* 1 ? 5 , v piasHcsimsmess 

• ifjose. ^profits tumbled 49 per year also included' a of the middle of last year **We ®^ own SF 55 vo *4 ine 

-entARm orJl^ashSre. * 30 toaro fro£ MienteJnd % ^s *” 

! cam S178m or . $2.64 a share in the exchange of 4m shares of showing signs of stability and. remaul oopresswr. 

fifSt quarter. Sales stock for Dow bonds with a face to some cases, are improving Although the general picture 

Vetoed 12^ per cent from value of $137m. sliehtly.” for Dow has improved. Mr 


. " S2.31bn. 

. ... I '” ijjhercontpanv said its btrsi- 
that serve the auto- 
, , ," :j t Btoi?Oi:housing and steel indus. 
- ■" ftoBf-were all hurt by - the 
1 >. iwesskm. But. it noted that its 
. ■: iatterx products ■ and o41 and 

/' * r : BP.- ^ “Service businesses per- 
' L ..&n3«i strongly during the 
{Barter. • 

. 'FOC.'- - its part, Monsanto 


Despite the decline to ftfst 
quarter earnings. Dow claimed 


sliehtly.” for Dow has improved. Mr 

He noted that compared to Oreffice said “It is still nothtog 
the fourth quarter of last year, to wile home 1 about " 


Bad quarter for Merrill Lynch 


It strove to raise the quality 
of its assets. . . 

Profits amounted to 5199m,. 
or $L55 a share, more than 
double lasf year's first quarter 
result of 897m, or 77 cents a 
share. The comparison is a 
little misleading because the 
early months of 1981 found 
U.S. hanks under pressure 
from high interest rates, and 
many performed badly, 
including Citicorp. 


‘Vhr bo^T^e mainly 991. 


York bond market- tie negative impact on bond hrough Algemene Bank 

First off the mark was a P ri <*5 ^ week’s surge to Nederland. 

S150m seven-year issue for U.S. money supply. / This morning should see the 

British Columbia Hydro led by In the early evening a Thircr au ^, L ^ *>f a I50m five-year 
Deutsche Bank. The bonds bear bond, on a raiher more comply v* 0 * 1 f °r the World Bank 
a 143 per cent coupon and have cared structure, was announce/ lead manager, 
been priced at 99|. by Continental. Illinois fer “ C0U P° n ,s 10 P er «w* 

Later Morgan Stanley an- Commercial Credit Finance, j 31141 lssue P n cv par. 
nounced a SlOOm seven-year wholly owned subsidiary / The city of Sherbrooke In 
issue for Union Carbide, which' Control' Data. I Quebec is raising GS12m through 

also • bears a 141 per cent The borrower is raisins / 3 five ^' ear bond with a coupon 
coupon. The issue price will be initial sum of $50m ibrougp , per cent and is * w Price 
fixed this morning but will not three-vear 145 per cent bp 01 par 1°** by Kredietbank 
be less than 991. issue priced at par. But rfh (Duxem bourgeoisie). 

Both bonds made a good start $1,000 bond will bear ro In Swjizoriami. the private 


Later Morgan Stanley an- Commercial Credit Finance 
nounced a SlOOm seven-year wholly owned subsidiary 
issue for Union Carbide, which' Control' Data, 
also ■ bears a 145 per _ cent The borrower is raising 
coupon. The issue price will be initial sum of $50m ibroug 
! fixed this morning but will not three-year 145 per cent bj 


jM-e announced in the West 

prman and Swiss market^ but 
f the Dutch market Finland 
is launched a FI 100m 10-voar 
>3 per cent bond at par 
rough Algemene Bank 


from higher net interest re- [ Both bonds made a good start $1,000 oonci win vear in Switzerland, tlie private 

venue which reached a as investors appear more than warrants entitling the hold/lo placement for Georgia-Pacific 
record S802m due to the re- j willing to buy into good quality purchase over the next f ;ir has been increased to 
legation of U.S. interest rate ! issues against a background of into a five-year 15 pe“ centpn- SwFr 120m from SwFr SOm and 

ceilings and the more prudent : declining short-term interest callable bond. / Credit Suisse is also leading a 

frmrtimr nnlirint adnnted bv I rates. Six months Eurodollars Continental bom mfvis SwFr 20m five-year 7 per cent 


issue priced at par. 


BY RfCHARO LAMBERT (N NEW YORK 


its part, Monsanto THE BIG U.S. stockbrokers are and continued inflationary 
.eported.h 16 per -cent decline having a rough ride in .1982. pressures on most operating 
u T.'^first- quarter - profits to Merrill Lynch, the industry . expenses. 
g4Um from 5176m in toe leader, yesterday reported a The fall to commisrion 


nwjfnt -quarter -profits to MerriH Lynch, toe industry 
.'from 5176m in. toe leader, .yesterday reported a 
'' jgifc^ieriod last year.- Sales toarp fall to its first quarter 
- is^Aidso down from' $l£bn earnings from S45^2m to 530m. 
first period . of 1981 to Earlier this week, She arson— 
- trow part of American Express 
VtJWife*- other chemicals com- — announced that its profits bad 
Monsanto’s - chairman, fallen 29 per cent over toe 
Jplui Hanley echoed a same period. 

' i^p-TtoPr jingle-. when he saidr Explaining toe setback 
quarter results re- MerriU said that results had 
' continuing - .reces- been hit by a decline in com- 

r .' business environment mission revenues of 14 per cent, 

* the world.” & narrowing of interest spreads 

v v 2 r >;V'??3or American Cyanamid, 

i-:; ^''icrfiflP.orted- -a 21 per. cent • 

’"’ine in first quarter earn- • 1t a. 

' ’ , ' r to S38m or _79 cents a I O'!/ - I'l'ff’T O 

'*r ,v from last year's level ■ /|a III L is 

UIW' ? r 81 a share - Sales w M 

<?- ? A.r per cent decline w 
o 9S4t5m from 5887m. ^ OUR YOftK 


leaner, yesterday reported a The fall in commission 
sharp fail to its first quarter revenues largely reflected lower 
earnings from 545.2m to 530m. investment activity ' by 
Earlier this week, She arson — individual Investors. There had 
trow part of American Express been a .tendency . for many 


inflationary risen, by more than two-fifths, 
operating First quater earnings come to 
■ 76 cents a share, down from 
commission 5L17 a year ago. The dividend 
ected lower is 32 cents per share rate in 
ty ' by effect since the third quarter of 
There had 1981. 

for many At least one broker is buck- 


| as investors appear more than warrants entitling the hold/to placement for Georgia-Pacific 
willing to buy into good quality' purchase over toe nexj hr has been increased io 


invesors .to move on to the side- tog toe trend. Donald Lufkin 
lines -because of the unsettled and Jenrele, yesterday reported 
economic climate and toe rival, net income ahead- from $2.4m to 


pull of money funds. S3 .4m to the first 

However, there had been a gatos arose mainly 
sharp rise to government meht banking, 
security trading while invest- management, and 


& narrowing of interest spreads ment banking revenues had 


$3.4m to the first quarter. The 
gatos arose mainly from invest- 
ment banking, investment 
management, and trading in 
fixed income securities. . . 


Tax lift at United Technologies 


BY OUR NEW YORK STAFF 


^ *aiur ; 

;.?g>oa start for 

; -;!E^;Teiecoin : .':- 

. ^By Robert Gibbm.ln Montreal ‘ 

‘2-fQRTHERN Telecom, Canada’s 
f'^lirgpafc high - technology 


, FIRST QUARTER earnings of. this effect net income was 
5162.1m are reported by United $95.5m, 16 per. cent below the- 
Technologies, toe U.S. high . 81 13.6m of the' first quarter of- 
technology conglomerate which 1981. 


Sales were also lower this 
things, Pratt and Whitney air- o . 

craft engines, Otis elevators ^ 3r / t tfl 532,111 from 


and Sikorsky helicopters. But 
these figures include toe 


lis effect net income was and semiconductor industries 
15.5m, 16 per. cent below the- hit results in the latest quarter. 
13.6m of the first quarter of - ' But Mr Harry Gray, chairman, 
> 81 . said that a number of factors 

s r wero ! 

sa\h« ^ company’s fuel-efficient i 

53^bn in 1981. JT9D-7S4 engine by Singapore | 

The conHiany said that broad Airlines - to power its new 


- -m raised its first quarter ing change for U.S. investment 
x.^yiM>gs this vear to C$38im tax credits of 566 . 6 m. Without 

U.S531.4m) or C$1.10 a Share , 

'“■-rpn»:X$23.4m or ■ 68 ■ cents a 

, k -iiare |n the Same period a year j . . nrr« 

■:^ s gs*2r - c *? Jm Goodyear 

• f 1981 • figure, however, 1 by OU* NEW YORK STAFF 

.'fdudes a C$l6m gain-from.toe 

its shares in. InterstL A 19.6 per cent decline m first 
■ *.ji n jie^strong performance in toe quarter profits to $45. 6m or 63 
,!rii:rst quarter . of this year had cents a share from 556.7m or 
— no n - w idely expected. - ... 78 cents a .share in the same 


cumulative effect of an account- weakness of toe U.S. economy Boeing 747s in the largest com- 


and particularly the. soft condi-- merdal airline order for the 


tions of toe commeiml airline • -first quarter. 


. significant 


Goodyear Tire in reverse 

BY OUR NEW YORK STAH= 

A 19.6 per cent decline in first The company said . . first 
quarter profits to $45.6m or 63 quarter sales to the U.S. were 


Thomson shows 
£43.5m profit 


rst quarter of this year had cents a share from 556.7m or slightly higher than a year, ago Organisation 
«a«-widely expected. .- - . 78 cents a .share to the same while earnings in. toe U.S.. were gas. travel 

The company said that strong period last year is reported by up 21.5 per cent despite the group, 
rders for digital switching Goodyear Tire and Rubber, toe recession and the low volume (US$76.7m) 
rs terns brought its sates batik- leading U.S. tyre company. of U.S. automobile production, operations x 

But ' toe company said the UB. sales to- the. first- quarter 


retems brought its sates back- leading U.S. tyre company, 
ftt to .‘OSKSSbn ut March, 31,.' - But' the .company said the 
higher than the same decline was not as large as 
r year. ■ earlier company estimates, increased 

The long recession' was affect- which had suggested a drop of 524.8m. 

^ ' llr^Pjne of its other products, as much as 25 per cent. Foreign^ 

- • and it planned to Sales in the period were 33 

■ -'-roniror its business closely for per cent lower at.52.15bn, com 
ny- further signs of weakness, pared with $2.22bn to 1981. 


By .Our Financial Staff 

INTERNATIONAL Thomson 
Organisation, toe Canadian oil, 
gas. . travel . and publishing 
group, earned £43. 5 m 

(US$76.7m) from continuing 
operations to 1981. In 1980, 
earnings -of £45.1m were struck 


decline was not as large as totalled 3L26bn while profits } after losses at Times - News- 


to • $30 -2m 


from papers of £6.8m. Earnings after 
extraordinary - losses, arising 
however, chiefly from toe sale of Times 


Sales in the period were 32 declined 7J> per cent to $885m f Newspapers, were £19.7m to 


while foreign earnings dropped 
5L5 per cent to 515:4m 


1980. -Sales moved up from 
£917 .2m to £L2bn in 1981. 


ceilings and the more prudent 
funding policies adopted by 
toe bank, after it got badly 
burnt to 1980. 

But efforts to strengthen 
the balance sheet resulted to 
a decline to assets. - At the 
end of March, these totalled 
512 7.31m, down from $ 119 . 2 bn 
at the end of 1981. Although 
a less of assets Is rare, this is 
viewed as a healthy sign 
given that toe bank's return 
on assets doubled from 0.34 
per cent to the first quarter 
of last year to 0.68 per cent 
this quarter. 

• The financial troubles of 
Bank of America, toe largest 
Ui. bank, continued in toe 
first quarter of this year, 
though they were relieved to 
some extent by good results 
on its foreign business. 
Profits were up only modestly 
and toe bank, suffered a 
decline to total assets. 

Earnings were 5115.7m or 
78 cents a share, up; 3.4 per 
cent from $UL8m in toe 
same quarter last year. But 
total assets declined from 
$12L2bn at toe end of 1981 
tQ 51l8.3bn at March 30. 

Mr Sam ArmacoSt, chair- 
man, said the strong points 
of the bank’s performance to 
the quarter were Improved in- 
ternational results, and a 
slowing of personnel and 
other non-interest expense 
growth. 

O Chase Manhattan, toe large 
New York bank, reported pro- 
fits of 91162m or 9324 a 
share, which was up 58 per 
cent on the same quarter a 
year before but down 24 per 
cent from the final quarter 
of last year. Chase’s best ever. 

The year-on-year improve- 
ment was due mainly to 
higher net interest income 
and fee and commission re- 
venue. But 'against this, 
operating expenses and loan 
loss provisions were also 
higher. 

Chase’s assets totalled 
$79.5bn, up from S76.5bn at 
the end of 1981- 


Contincntal 


I Credit Suisse is also leading a 
nikeis SwFr 2Um flve-vear 7 per cent 
rtf in private placement for Hokusbin 


fell yesterday to 15 per cent were also firmer y^e rtf in private placement for Hokusbin 
from 15? per cent on Monday. .. sympathy with the Network Electric Works, guaranteed by 
The ' bond market expects market. No new .pblicMues Sumitomo Bank. 

Honeywell foreciss downturn 


| BY OUR NEW YORK STAFF 

{ DIFFICULT market conditions ness to maj 
i have had a major impact on continued t 
I earnings of several leading U.S. of revenue 
j computer companies although attributed 
[ earnings were in general above earnings ga 
expectations. over costs : 

Honeywell’s first quarter ^ an “ 
operating net earnings increased 0asiC marKe 
555.1m or $2.46 a share from Mr Edso 
550 An or 52.25 a share to last- well's chair 
{ year's corresponding period.- from on, 
■ But toe latest profit includes a declined asi 
; $36m gain from the sale of. operating If 
j Honeywell’s interest in General tion systei f 
! Electric Information Services y[ T Spenr 
j Company to GE. quarter 

j Revenues totalled 5L26bn. fall below? 9 
compared with Sl-21bn in l&Sl’S a share P 1 
first quarter. rates cor . 


The company said foreign general 
currency weakness and sluggish- Anotl 


ness to major ujtf ecnomies 
continued to li/ thr growth 
of revenues arfeanings. It 
attributed thc 61 ^ quarter 
earnings gain jbeiyr control 
over costs anrfP^PS rather 
than to nnyfrroTcment .-in 

basic market ritions. 

Mr Edsory encc ri Honey- 
well's chain/ -said earnings 
from on# opeintions 
declined asf su ^ of a small 
operating p. the informa- 
tion s>-stetf islness - 

Mr Spen/' arns that second 
quarter ep are likely to 
fall below/** 81 level of $3.15 
a share P> e high interest . 
rates co£ 10 retard the 
general e®i c recovery. 

Anath/ ma J or computer . 


maker. NCR, reported an J I 
per cent increase m firsi 
quarter net earnings tn 530.6ni 
nr SI. 14 a s4tare from S27.6m nr 
31,02 a share the year before. 
Revenues rose 3 per cent, to 
3754.6m from 5733m. 

Tandy Corporation also 
reported an increase in profits. 
The manufacturer of consumer 
electronic products said third 
quarter earnings rose 30 per 
cent to S45.4m or 44 cenw a 
share, from 834.9m nr 34 cents 
a share. Sales were 15 per coni 
up at 8477.6m from 5408.3m. 

Nine^nomh profits were 
5162m or $1.57 a share, against 
5115m or $1.12 a share pre- 
viously, on sales of S1.53bn 
against Sl-2Sbn. 


FT INTERN AT1JIAL BOND SERVIC E 

The list shows toe 200 latest internr. l>0 " d issues for which an adequate secondarv market 
exists: For further details of these or/ »onds see the complete list of Eurobond prices which 


will be published next on Wednesday M 


U.S. DOLLAR 

STRAIGHTS luiw 

Annex Ini. Fin. 16 s * 92 75 

AnhatiMr-Busch 61 S 88 100 
APS Fin. Co. 17>, 86 ... 60 

APS Fin. Co. 16». 89 . 75 

Arm cd O/S Fin. 15*. 88 50 

ATT 89 400 

Bakar Int. Fin: 0.0 S2 225 
Bank Montreal 91 150 
Burroughs fn(. 15V BE 50 
Canadair 15 s : 87 . . . 150 

Can. Net. Rad 14** 91 100 
Carolina Power 16*7 89 60 


, . David Lascelles looks at a $30m scandal that rocked the U.S. advertising industry 

?- JWT still needs the skills of its image-builder 


©NE-TIME aberration ” may 
«pi-; some thing" of , an under- 
laiument for a $30m case that 
■ocked a whole industry. But 


that someone had been entering JWT*s report of toe investiga-. no big account losses at all, a 
fictitious business dealings into tion continued: ‘.‘’The task of reflection of toe forthright 
its computer over a period of the investigative team was com- manner in which management 
four years. The sum was put plicated by the fact that, in late tackled toe trouble and JWTs 


; Fin. 16 1 ! SB 700 

CFMP 1B>« 96 100 

I CIBC 15 87 100 

Cil'coro O/S 15*i 97 - 125 

CNA 15». 37 75 

Cons.-Bathuiat IT 1 ? S3 60 
Con.. Illinois 'l5*i 89 . 100 

Duoont O/S 14 1 ? 88 . 400 

n.nnonl O/S Cap. 0.0 90 300 

ECSC 14% 87 50 

EIB 15 1 ? B9 750 

G«n. Else. Credit On 92 400 
I Gan. EJoc. Credit 0.0 S3 400 
| GMAC O/S Fin, ->8 88 150 
GMAC O/S Fm 15*, 97 700 
Gull Canada Ltd 14V 92 100 
Gult Oil 14*, 94 . . 175 

Gull Oil Fin.. 0 0 92 .. 300 
. Ini: -Am. Dv. Bk, 154 87 55 


I IH 

zz 

2. 

00 

50 

S3 

98 

78 

20 

44 

30 

06 

26 

90 

E6 

14 

32 

55 

■It 

at. 


H-ov 1S.11 
+0'-.- 15.26 


tackled toe trouble and JWTs 


iiow top executives at at $18m. But two days latei* January 1982. Mrs Marie Luisi. success to containtog toe roL 


■^VVTjfhe large U.S. advertising 
. [.xinipaiiy, - ' prefer lb " label the 
xmputcr scandal that cost it 
roJBftns to lost .-earnings sod 
it to' shut down part 
ifrits business. 

At a meeting with Wall Street 
majysts this-week^ JWTs first 
iipoe^tho scandal broke. Mr Don 
• ffirtsfon. the chairman and 
lij&F iHiecut ive, looking dapper 
md<r'imruffled, ' preferred to 
the future rather than 
ffe'liUast. predicting a healthy 
cent boost in revenues 
■ EtsSsfrar. But inevitably, the 


JWT uncovered another $6.5m 
of entries,' and then later 
another. $5.5m. 

The entries were' made to 


JWTs -television .syndication 

unit which was engaged in dis- JJJKlS requests to her 
iributing programme material ' 

to television, stations, usually ^h e investigation later pinned 
in exchange for advertising responsibility on Mrs Luisi, and 
«Mnh if - hanked.'’ JWT she was fired on March 31. She 


then head of syndication and The message that Mr Johnson 
spot buying to j. Walter Thorap- and bis colleagues left with Wall 
son U.S., left the offices of the Street was that toe write-off of 
company and has been unavaii- ?30m did not actually involve 
able for questioning despite . any cash outlays. The company 


months, people will ascribe it to «**■* on i«, 94 . 

j Gull Oil Fin.. 0 0 92 .. 

the scandal, he said- .imr-Am. ov.Bk.iy.ei 

But the affair also aired a japan Airlines is*, as 
simmering row about television Jap*" Dpv. bl. i5»* 87 
syffdlcation. a Practice which 9 7 1 61i ® 75 

people m the broadcasting and nbw & Lab Hy. 17 *, 89 75 

advertising business believe okg is»« 97 50 

poses conflicts of interest An ^ 

advertising agency which has p, c Gas s 81. i5h 89 45 

banked large amounts of a tele- J. c. Penney Gi. 0.0 94 350 

OuPbec Pidv. 15>4 89... 150 
R.J Rynlds. O/S 0.0 92 400 


had simply spread the impact rision station's advertising time 


the chairman and which if “ banked.” JWT ?he was nreu i 
ive, looking dapper then made this stock of “ ad ls still r efusi n 
led,' preferred to v time” available jto its advertis- except 

; future rather than . ing clients — a form of barter lawyer. 

*e dieting a healthy which is 'not uncommon to the Aside from 
it boost in revenues advertising industry. But the toe affair ' 
But inevitably, the syndication unit was recording questions *bo 
were overshadowed deals that had never been made, controls at Jl 


over the last tour years and can exert a 
written profits for’ that period broadcaster 
down accordingly.- Most impor- resent this, 
tant, it would not affect toe After tot 


is still refusing to discuss toe ! dividend. Steps are also being 


can exert a lor of leverage, and Saskatchewan i 6 i 4 88. ‘ 
broadcasters, not surprisingly. Saskatchewan ie 89 
resent this. .. g B,ln . 155 « ■*■■ •••• 

After the affair broke. JWT S' . " 

decided to. pull out Of the Swed. Ex. Cred. 16 1 J 33 75 
general time banking business, s wad.- Ex. cred. iSj 89 too 


through her taken to ensure such a thing general time banking business. swpd. Ex. cred. i; 

does not happen again. But it will continue to syndicate Es*tem is\ ^ 

? sheer drama. Mr Steven Slawson, an analyst on behalf of individual clients Tranacanada i6 89 


Aside from the sheer drama. Mr Steven Slawson, an analyst 
toe affair raised serious with Bear Stearns who attended 


questions about toe internal 
controls at JWT and not sur- 


"questious as to how JWT The unit was also buying tele- pristogly, the shareholders took 


wuld allow such a thing to vision time outright without a 


lappen, and how it would affect 
iu>iines5. 


ready client ' to use it. and 
granting broadcasting clients 


fright. JWTs -stock fell more 
than 20 per cent when toe news 
came out But clients did' not 


the meeting, said yesterday that The worst may be over for "!*[' 

he thought management had JWT. But it will have to tend Avnji 

handled the problem quite well, its image carefully in the months 

and toe absence of client defeo ahead. Fortunately, it owns HiH straights*" 

tions was encouraging. ’ **But and Knowlton. tbe largest public Australia s«, si 

there’s always a danger that if relations agency in the U.S_ and Auatroi* 9 ^ 91 


s Essiem 15 : » 88. . 75 

^Canada 16 89 100 

Or for Cash. Wells Fargo I- F. 15 87 75 

The worst may be over for slink 6 ik? S i« 2 sn 

JWT. But it Will have to tend Av«»g. pries change; 


IS HI -O’. 13.9* 

0 15 ' 31 
Si +o, • 15 ^ 

2? +0>4 15.14 

E* S>. 0 U-58. . 
3 +0».14JS 

+0% 15.2) 
iSZ 0 14 8S 

iSuiP** +0SM-82 
3 h*.+o* 

S +0», 15.71 

/+0». +0 3 , 15.92 

+0>jr0',1B.10 

im ’/ +0, » +( ^ ia 90 
ite’> +0 ** +0,, U T7 
-VOS + OS 15.14 
+2$ +0». +0>i W.S3 
+0»* +0 l j 15 27 
,3i. +G>, +0’» 15.18 
«5» +01.W.12 

ZkF. +0*, -0», 15.68 
Jfii, 0 0 15.48 

,302 +0*; +0 1 « 18.10 

?»«, +-0*. +0>» 15.44 
/ 20*1 +0^t +0>* 14.38 
+ J] 07V +«> , » ,S 0A 

7l02V +Oh +05 15.44 
i 101 ’a +0‘, +0>, 14.67 
£ 99>. +0V +0», 15.69 
F, 101 s ! +OH +0> 14.92 
Jy +0\ on week +0V 


OTHER STRAIGHTS Issue. 
Moruroal 17 89 CS .. . 50 

Nl. Bk. Can. 164 88 CS So 
Rancanadian 1B4 88 CS 85 
Oucb. Hydm 18^ 69 CS SO 

cs - ^ 

Tianselre 17 89 CS .... . 50 

U. Bk. Nwy. 9*, 90 EUA 18 
Algemene Bk. 1ff« 86 FI 60 
Amies Gioup 13J; j* F * 

Amro Bank 12 86 FI ... 75 

Amro Bank 12 86 FI ... 60 

Pierson 10*« 86 FI ; 50 

Rabobank 12 86 F| 50 

OKB 14 BS FFf . . . 

Solvey or C 14^ 86 FFr 200 
Acona 14 85 E ■ • * 

Bonsliciel 141* 90 £ 2D 

BNP 13 - 91 C « 

CECA 13‘r 88 E . - ■ » 

: Fin*. Ek- Cred. 13V 86 C 15 
Gen. Elec. Co.. '2V 89 I_.SO 
Hi rani Welker 14»* M f 
Pnvaibanken 14*a SC E -1| 
Quebec 15 1 j B» E -■ 35 

Reed |1W) NV m, 89 C » 
Royal Trusrco 11 PD I 
. .SDR France ,5 '_J ^ L r ™ 
Swed Ex. Ci 1ft 86 C 20 
Eurofima 10 1 * 87 LuxF- 500 
EIB 9\ 68 LuxFt 600 


Closing prices on April 20 

Change on 

Issued B id Offer day' week Viold 
SO tIOIS 102 1 , o 0 16.47 
50 199 100 0 —0\ 16.58 

85 t98*a 99 0 O 16.75 

--S-4R 

50 tioo». 10 a 7 . 0 +£. 16 .^ 

18 90*4 91 0 -0 J » 11J5 

60 • 1««. 101 >. +0'j -O’* 9.91 
40 704*4 105 +05 0 10.97 

75 105S 106 +0 1 . +0|i 10.22 

60 105** 106 +0*« +0»4 10.31 

50 9^4 100*4 +0*, -O’, 10^3 

50 105*x 105** -0*« -0** 10.28 

400 90>« 91*4 O +04 17-^5 

200 91*4 92*« 0 +0-» 17.82 

20 92*4 93*. O O 16 73 

20 89 87 +0*, — 0-. 17.31 

15 89*. 90^ +fl*« +0*. 75.66 

20 93*. 94*. +0*. 

15 93*- 94*s 0 -O’. 15.89 

SO 91*. 92*. 0 -OS 14.45 

~ ZS ' 96*4 F7S +0*4 +0*4 15.40 
12 ' 92S 93S 0 +0** 1G.3S 

35 99*i 100*i -OS +0S 15 J7 

2b 100S 101»* +0S +0S 16.40 
12 -96‘j 97H +0S 

30 97S OB’, 0 +0*4 1553 

20 - 85*. 96*. 0 +0S 15.01 


SOD ' -99S 100*. -OS -0*4 10-53 
600 -94S 95S -0*, -OS 10.91 


ROATING RATE . 

NOTES . Spread 

All.ied Irish 5S B? ... 0*4 
Bank al Montreal 5*4 91 O’, 
Bk o' Ti'kVO 5S 91 (D) O 1 , 
Bank Novn Scotia 5*4 93 OS 

BFCE 5*4 88 0*4 

BFCE 5*4 57 OS 

.CCCE o»4 2002 .. . OS 

Co-Ban Euicrfin o’- 91 . 0*. 
Credit Agticolo 5*4 97 OS 


Credit Lyonnais 5S OS 
Credit Nat. 5*. 94 10*. 


Spread Bid Offer C.dto C.cpn C.yld 
.. 0*. 90S 90S 15/10 15.69 15.95 

II 0*. 98*a 99*. 29/4 17.06 17.21 

)) 5*1 BBS 95 10/6 13S 13.42 

is os 99 m** 29 / 4 1 2-S! 2-2 

OS 99S 99S 26/4 16.94 17.05 

OS 99*j 100 27/7 16S 16.29 

0«! 98S 98*. 11/6 14.82 15.02 

. 0*5 90S 99*i 14/10 16 16.1B 

0*: 99 99*7 24/9 MM " 15.66 

97 OS BB», 100 1/10 16 10.04 

iSj*..98*7 99 9/6 14.69.. 14.87 


SSTOT-Kftilff 15.44 15.57 

Den Morale Cred SS 97 OS 97. 98. 4/6 13.56 13.84 


DEUTSCHE MARK 
STRAIGHTS 


fraud came to ttght in. credits for unused time but not leave in droves as some people XYZ Corporation leaves JWT presumably its own promotional 


February' when JWT riqrorted 

o =s:- >x ■■ :• 


recording the cost as an expense. .. feared.. In fact, there have been for other reasons in the next few skills will not come amiss. 


NORTH AMERICAN QUARTERLY RESULTS 


’. jiWBWCAH EXPRESS 
r . 1982 

i Firft [nuditer '” S 

w**rn»c . t.Bbn 

^"Orfiftra . .118.0m 

jet per s hare • 1.25 

SjScAWllO ME" PRODUCTS 

1.11 bn 

.*e Noliis ..- 145.1m 

1ft por. sharp 0.93 

H5Eo ’ *“ 


"BURLINGTON NORTHERN 


118.0m . 109.0m 
1.25 1.19 


1.11 bn I.OSbn 
145.1m 1Z7.5M 


1.11 bn 1.22bn 
37.6m 90.0m 


-ftist quarter 

taE"M 

«[ riroTita 

Mn share 

SmSTRONG RUBBEfT 


1.65bn 1.B4b<t • 
17.7m 69.7m 


Second quarter ' 

Wftnue 

a Ptoflw ...... 

•tuor share 
Sixmomb* 

Bvenue 

b’-drafrui -, 

W per share 

BwTtX CORPORATION 


1961-82 198041 


129. Om 146.3m 
3.98m 4.83m 


28f.Sm 256.2m 
7.68m 8.84m 


Flat quarter 
Revenue - 

Net profit* 

Net per stare . 


CAP. CITIES COMMUNICATIONS 


Plat quarter S $ 

Revenue MSAn 1229m 

Net profits 18.01m l6J5m 

Nat per share 1.37 1.25 

CROSS ft TRECXER . 

“ -~ ^ ' 1981-82 190081 

Second quarter S' S . 

Revenue 103.6m 102Jm . 

Net profit* 10.8m 10.3m 

Net per share 0.87 0.84 

. Six months 

Revenue MQ.Im 1 97.8m 

Net profits 20.4m 19 4m 

Net per ehere 1.B4 1.57 

CROWN CORK ft. SEAL 


ENGELHARD CORPORATION 

_ 1062 1981 

Fh*t quarter . 'S' $ 

Revenue’ ...... 436.0m 705.0m 

..Net profile — 1«e 15.1m 

Net per ehere OJQ 055 

FINANCIAL CORPN. OP AMERICA 

______ ________ 

Pint quarter $ 8 

Revenue 169.6 m 63An 

Net profile 7.82m- 3P4m 

Net per ehere 0.79 . 0.41 

FJRST AMERICAN CORPN. 

1982 W1 
Rret quarter S S 

Net profits 1851m 17.75m 

Net pw elwre -.. 0£9 O.BO 

FLAGSHIP BANKS I 


IDEAL TOY 


Fourth quarter 

1981-82 1990-81 

S S 

Revenue 

50.2m 36.4m 

Net profits - 

6.74m t4.9n» 

Net per shore 

1.74 11.27 

Year 


. Revenue 

216.8m 141.4m 

Net profits 

12.4m tl5-4m 

Ne»x per share 

3.21 14.00 

t-Loes 


ILLINOIS TOOL WORKS 


Fi/et quarter 

1982 1881 Revenue 

, , Net profits 

1851m 17.75m Net per ehe re . 
OM -O.BO JOSTBWS fNC. 


113.2m 102.0m 
9.2m ll^m 


OHIO EDISON 




1982 

1981 

First quarter 

S 

S 

Revenue . .' 

381.2m 

303 8m 

Net orofita 

53.64m 

46.73m 

Net per share 

.. 0.58 

0-56 


1981*82 

'■1980451 

Third quarter 

S 

S 

Rxvenue 

29l.Qm 

292.0m 

Net profits 

15.4m 

14-2/n 

Net per share 

Nine months 

0.62 

0.61 

Net profits 

43.1m 

34.9m 

Net per share 

1.73 

1.53 

PSWWALT CORPN. 




Comp. Tel. Esp. 10*3,92 100 
Denmark 10 88 ...+./ 10«U 
Denmark 10*» 92 ... / / 100 

EDF'9», 92 J./. iod 

EEC 10*, S3 10/ 

EEC 9>« 94 2pi 

EIB 9*4 83 ;..U. fif 

Inter- American if ’/fi' 70 
Ireland 10*. B6 .1* /.}... M 
Mexico 11 88 
Mt. Bk. Dnmk. WMSy to 

Nacnl. Financier It 1*8 

Nil. We»t 94 SB LI Ifi 
New ZealancuWi .. 


Quebec 104/32, 

' Quebec Hydro lb*r91 
Tauemautobeijn & 9* 
Vaiwuuelb Ilf ,’9J -. 
World Bank 8>#{ — 

World Bank .10 r 

Average pries that*! 


/ Change on 

Offer day wrrek Yield 

aopJ'i iw» t0 *» 

f!; In 31 . i|uv. 0 +0*, 8.70 

*»&, 103*1 - 0 1 * • 

inn/ioi», 1C1 T . -0*, -O-i 9 61 

iS?ioi>Siar. « +£■ 9.81 

■tod 101 *, 101», +0*» + 0 ’ 1 9-6? 
10# 104*, 104'-, +0*, +0*» 9 47 
2 q/ 102*3 103 0 0 9-3* 

101 T , 102*, 0 +0*3 9.» 

id 105*. 106*1 0 +0*3 9.30 

r,/ 102 *, US 7 , + 0 *. + 0 *. 9.41 

it 10ZV 103 *3 -0*i +1*4 10-30 

to 102*. 103 — 0\ - 0 *, 10.04 
ICO*, 100*, +0*, +0*. 10.86 
IBk 105*4 108 -0*= -0*c 8.97 
200, flftKtt 0 -O'. 8.7* 
■ 15 S i 02 MO»j + 0 *. - 0 7 , 9 .C 8 
l5o\ 106=, VF, +0*i +1»« 9-M 
160\ TtBhlOS*, -0*, -0^ 9 JO 
SO \ 102’* i 02=", + 0% +0\ BM 

100 1 1«*,101*, +0*. +0*»n.2B 

100 +0*4+0*. 9X4 

SO 184*3145*4 +0*, -0*, 9.20 
On dsvDoo week +0*» 


Gonhntinco 5*4 92 0*. 

G2B5VD2... *0*4 

.Ind. 8a nk Japan 5*« 38 0\ 
Lloyds Eurofin 8*. 93 . §0*4 
LTCb Japan 5H 89 - 0*» 

Midland Int. Fin 9 91 0*. 

Nji. West Fin. 5*4 SI §0*« 
Nippon Ciadn 5*< to ■ 
Nord'C Int. fm 5 ? . 91 0*4 

OBshore M-i-rs c, 4 91 0*4 
PKb.-n.en 5 S* 0 *j 

Sanwa Int Fin. 5*. B8 0*j 
Scotland Ini 5*4 92 0*, 

Pacilic 3*. B* 0*6 

. SociBle Genciaio 5*4 95 0*4 
. Standard Chon 5 *j 9' O', 

Sumitomo Fm 5*j 88 0*» 

.Swadon 5’» B9 ■■ O** 

Toron-o Domin' n 5*. 92 O 1 * 


ji, 99*, 99*. 30/6 15*s 15 56 

D=, 98*. 99** 8/8 14 94 15.W 

y, 99*. 99*. 9/5 13-31 1340 

Q\ 99 99*i 29/4 17-13 17.26 

0*. 99*, 99»i 16/7 15.31 1541 

0*. 98*, 99*i 30/4 17.06 17.17 

Oi, 99', 99*. 15/7 tS.y 15.M 

0>, 99 ** 99*. 10/8 16.06 16 16 

0*m 9a*j » 6/5 15‘i 15.82 

o£ 98*: » 2/6 13 13.16 

0*4 98S 99».17/B MV 14.54 

0‘j‘lto 99*, 24/9 15-81 15 A3 
O', 98', to 23/9 15', 15 57 

0*, 98V 99V 24/5 13*. 13 J7 

OV 99*. 99', 1/9 15 Jl 15 41 

0*1 98', W 18/5 13J1 1348 

0*. 99>, 99V 9/8 16 16 06 

0*. 98V 99V26/B 15 31 15.45 

OV 99*. 100 11/9 16V.. 18.42 


k 100 -. *61*»Wi 

ktSr SO 184‘t ie*j 

o ¥njV Jrengee... atdayOoo 


Saeiind quart* 

•OAirt 1 

M profits 

ht t3%r ehere ..... 
Stt months 
wefi* . ..... ...... 

« profits 

“ Per share 

oSbabdihT' 

•tfi. 

fpurth quartet 
woqoe 


-1961-82 1980-81 


First quarter 

Revenue ..... 

hter profits 

Net p er sharp 

DlEBOLD INC. 


32D.3m 334.0m 
10.29m 1821m 


Bret quarter 

Nat profits 

Nat per thaw 

GEORGIA-PACIFIC 

First quarter 

Ravanua 

Nat - profits 

Net pet- share 

GOULDS PUMPS 


1882 1881 
S S 
657m . . 8.8m 
0.81 . O^S 


1882 - 1981 • 
S f ■ 
1.2bn 145bn 


Third quarter S S 

Revenue 87.6m 80.7m 

Net profits 5.1m 4.58m 

Net per share . 0.40 ' O.K 

• . Nine months- - - 

Revenue 2320m 203.7m 

Net profits - 11.62m 10.38m 

Net per shere 0-92 0.82 

MAHT1N MARIETTA ■” 77 ' .. T 


First quarter S S 

Revenue 248.7m 267.8m 

Net profits S.35m 2D, 07m 

Nat par share 0.52 1.94 

ROHM ft HAAS 

1882 1981 

Erst quarter $ . . S 

Revenue 475.3m 478.7m 


Issued Bid 
92 50 1Q3 : 

99 80 '104*! 

.... 100 104* 

... 1Q0 103* 

80 102* 
SO 50 101] 

... 50 1«P 

92 25 1(2* 


-Mbn 2Jbn 
81 . 2 m '81.3m 


1981*82 1380-81 


2 Jbn First quarter * * Hntqmmr 

3.50 Net profit* - W 'VZ 5- ?,S nm 

— — Net per share 1-2* 0.« Net per anew 

wal-t DISNEY PROPUCH OHS ~ H£UBLBN MC. 

TV- Y— : 1981-82 1380-81 

17. 1 m Second quarter * * j ^ Third qu< 

134m Revenue ■ NM*orofha 

t1<3? Z pOTe-re-r.:::::: - §S j S A 

r*. -R^rt*,. 4593 m 438 . 6 m R JSjT 

fr38 -Net Profits 33.06m SS.S^j «« « 

Net per share _ 1-18 1.64 | Net per ah: 


nreqoe 154 An 117.1m 

ft Diofrta +l3.8Brt> 16 34m 

ft'Sor debars 12^4 tl.32 

Vttr 

Krteue 4488m 394 5m 

st d rents .. t18-48m- 15 77m 

If per share . . . . 13 39 11.38 

t Less 


FfiOT quarter 

Revenue 

Net profits 

Net per ehere . 

MAYTAG COMPANY 


7B4.5m • 717 5m 
15ilm 38.72m 


Net profits - 

Nat par share 

SCO 1/1 LL INC, 

Hist quarter 

Revenue 

Not profits 

Net per share 

sealeiTpower 


16.00m 31.79m 


173.3m 202.0m 
1.88m- 7.32m 


Third quarter 


0.65 . - 0-8* Not per share 
i Sine months 
JAn 438.6m i Revenue . 

06m 5S.58m Nee Bioinn . 
1.18 1.64 Net per share ... 


First quarter S S Htst quarter 

- • Revenue 110.1m 114.6m Revenue 

1981-82 19BO-B1 N« profits 9 3m 11,8m ! Nor profits - 

S . 1 S • N« par share — ' 0.67 0^3 i Ne t per sbaro 

: a?jSr 17sS «6W TORN TIMES CO- t STERLING DRUG 

■ -058 083 / ! ' . i • . '®92 . 1981 ! 

-.Rret oderter 8 ’ S . Hist quarter . • 

l.5Bbn- 1 SZbn- r-Revanua .... 2Z6.5m Tto.lm | Revenue 

78.5m 87 3m i Nui profits IB 86m 1212m ■ N« o.reflts . 

3.81 3.13 j Net per share 131 0.98 ‘ Net per chare ... 


Asian DeWfilnkfi 89 80 

Australia 8S .1 100 

Australia $h ji { 100 

Beige lee trie 7, sj 80 

Re* rie Autcnisftt 8 SO 50 

CFE-Mruttee fa,jS2 50 

Co- on. 0*>(nerf 8V.97 25 

Crown ZeUybdl. ffV 92 100 

Denmark. 7> 81 TOO 

EIB 7y92 100 

Eler. dfe' Freice'7 92 ... 100 

FNEL « ffi .. 44 

First Cuy Mn. &t 92 ... 25 

MnnifobJ 7 92 . . .100 
KDrionaBpwr. Co. B 52 30 

Nippon ft and T. 6*i S3 100 

0X8 7 1 92 100 

Osi. Boneukrafi 7 92 100 
Ost. fenoar 7*j 82 . . 100 
Phriip (Morris 64 92 ... 100 
Ouabt 7V 92 100, 

Soc. lu*. de CnL BV 92 80 

Trenefpnade P»oe 7 94 100 
Voredberg Kraft 6V 9Z 50 
Worla Bank 8 91 .-. .. *» 


Change on 

Bid PAr day week Yield 
KBVhOSV +0*, 0 6.97 

■ 104 JKIB -OV — 0 *, 7J4 
IMWlSv — OV — OV 6.18 
ICBJnOV 0 0 6.09 

1021 -HbV +0*1 “OV 7.13 
10tf l3tV +0V +0V 7.81 
KJOVltoV -OV “OV 8.16 
102V 102V -IV “ 1, « 8- OT 
1«2 1*B*V +0*. +0V 6« 
IflZS 102% +1 T . +1% 8-88 

102 102V +0*, +«V 6-94 
101 / 101V -OV -IV 6-81 
101% 101V -OV -IV 7.75 
1 (M/, 102V -OV “O', 7.« 
It&j 105V +nv -OV 621 

isi ion. +ov +o*4 7.54 

ifiv 103* j 0 +0V 8.15 

tfev itov -ov - 0 *, 7 22 

1KV 102 7 , +1', +1V 8.80 
7 PIV 101 7 , — OV — OV 7.2* 

103 1C3V +0*t+OV 8.19 

toaviooV 0 -0*, 6.7 s 
104V 104V +0V 0 7.38 

103V 103V -OV 0 6.59 

101*4 unv -OV -ov 6-58 
105V ItoV — OV -OV 7 19 


Avenge price cliengos . On day 0 on woek O 

CONVERTIBLE Cnv. Cnv. Chq. 

RONDS date pnea Bid Ofler day Prom 

SsrstfL".. -3BJS 1 i|=iS4i 
ss:rik Ti '”. 5 ::..*?;s s SkRa^ «« 

Duiws Secs 5V96 -- 12/81 B132 Si. J?* a* 

Fiifiiau Fenuc 4‘, 96 . 16/31 S641 MV 91V +5 28-28 

Furukswa EICC. ^ 96 7/BI 300 BB to*, = 0V -4.1O 
Honsu.- Ti/S F.n 9*, 96 8/81 .1.38 175 78 “3 -10.« 

Hitachi Cable bV 96 2/82 S15 77V 79V +5V 4-33 

Hilecha -.-reu. Csn. a 95.7/81 1612 75 ^ 

Honda Motor 5’.- 97 ... 3/82 841 82V m +7*. 9.21 

meheupe 8 K 2/81 4£ 174 76 0 B1.SB 

Kawasaki 5V 96 ... ■■ 9/81 Z» «V to +0V 3.11 

Marui 6 96 7/81846.4 97V MV +2V 11.08 

Minolta Camera 5 96 10/8106.4 80V 52V +- 

MinorcO 3*4 97 S/82 B.16 1®V 87 -1 JJ-W 

Mu.nte SV 96 7£1 21to « tS-wI? 

Mire ri_ 7/81 188 78*2 ov *V *'■“ 1 

Sfppw ChamV-C "5 31. 10/31 919 K S. +£ ■ 
Nippon Electric 5V 97... 2^2 846 MV 87V +6V 
Oneni Finance 5V 97 ... Wtt U0& 

Sanyo Electric SN....8JMB g, “? 

Sumuomo Else. 5V « ■ ® 1 tlC. 17« 

Sumitomo Mat. 5V K W81296J 61V to -3V 17« 

KMiahSok^G’MDM „. 2/82 SM 98V 9BV +“** MS 

tSSSS * “S wafi 20 95V 96*.+1V 19.17 

• No Inlormanon available — previous day's price, 
t Only one market maker supplied a price. 

Straight Sands: The yield is ihr yield to redumption oi the 
mid puce; the amount issued is in millions of currency 
units except for Yen bonds where it is in billions. 
Change on week ^Change over price 8 weak earlier. 
Roaring Raw Notes: Denominated m dollars unlose other- 
wise indicated. Coupon shown is minimum C dto-Dow 
near coupon becomes ofloetnre. Spread - Margin above 
"six-month altered raw (t three-month: § above mean 
rate! for U S dollars. C.cpn-The current coupon. 
C yld“The currant yield. 

Convertible Bonds; DonominpiBd in dcllare unless other- 
wise indicated. Chg. day™ Change on day. Cnv. daw — 
First dew lor conversion into shores. Cnv price — 
Nominal amount ol bond P or share rapreaswi in 
currency of share ai conversion rare fixon at isoue. 
pram— Percentage premium ol Ihft current cilactrua pneo 
ol-acquirlrtg shares vi* the_ bond ov«r the mast recent 

_ price ro! The shares. 

Jj'niB Financial Timos Ltd.. 1982 Raproduction m whole 
bt in- pen— in any form npi - permitted without -written 
consent. Date eupplmd by DAT A STREAM International. 


Average price changes .. On day +OV on week 0*, 


YEN STRAIGHTS laaue 

- t Asian Dev. Bk. 8V 91 15 

UBS - 1BB1 | Int-.Amar. Dev. 8.V SI ..15 

S. t - - L Japan Airiinea 7%. 87. . 9 

444.7m 437 Bm New Zealand- -8V 87 ... 15 

29 53m 30.8m World Bank &V 92 ' 20 


Change on 

issued Bid Offer day week YtaW 
■IS 100V 101*, 0 o 8.09 

« 101V 102V D.+l>i.W~ 

'9 97V 98V+OV +0*4 f-M - 

15 100V 101V 0 O 8.M 

2o 10OV 10D 7 , +0*#'+0V 8.29 


Average price changes.. . On day B on week +0V 


Companies and Markets J 

Montedison Oerlikoi 

technology 4 

tor union payment 

Carbide BY OUR FINANCIAL STAFF 

. _ . A DRAMATIC collapse in 

By James Buxton m Rome profils has ] e d Oerlikon-Buehrle. 

MriNTFDISON the ' Itahn the Swiss weapons to footwear 

“ff “Sttk demand in the n^or 

Tirocess for making polyethyler. weapons division coupled vrith 
reverses tl rising development costs is the 

a ^__ where! main mason for a decline m net 


agreement reverses u rising aeveiuyw««*L 

a fLinn trend where! main reason for a decline in net ^575 

Suan C e«npani« aconire W P™«a ^eh tumbled to SwFr 


SKES sssH-ns-o.i-ft gy 

mSSoh, which is haae l 9 g.9m returned in 1980^ »7S 

in Milan, began develwing ni ^ result represent the 
own technology for high S^^econd successive year of poor Wgj 
catalysts for making P^^fSPfproflts from Oerlikon and it has 

towards the end of the J^f^'orompted the company to lop 

The company has patented a t third ^ its dividend. The 
large number of iayment is being cut from 15 bad 

l TTnim P.arhldfi. . l 4a tn nar r»ont new 


INTERNATIONAL COMPANIES and FINANCE 


Oerlikon-Buehrle reduces 

payment as profits slide 


OERLIKON 'S 

TRACK RECORD 


Net profit Dividend 


SwFrm 

% 

1975 

120 

12 

1976 

158 

12 

1977 

205 

14 

1978 

228 

15 

1979 

244 

15 

1980 

196 

15 

1981 

24 

10 


\ 

Elsewhere, the uncertainty of 
business conditions has led to 
provisions of- SwFr 20m which 
Oerlikon has taken against the \ 
accounts of its parent company . \ 

The aim of these provisions 
is to allow for substantially in- 
creased business risks and for 
the unfavourable earnings pros- 
pects of the parent company 
likely for the current year, 
Oerlikon said yesterday. 

In high vacuum and thin film 
products, welding technology 
and textiles, sales were either 
fiat or modestly lower last year, j 
There was rather more turnover ; 
buoyancy in anti-aircraft and j 


has patented VLiLa its dividend. The . buoyancy in anti-aircraft and 

Sle^umtS? of processes. -JjSjt is being cut from 15 back— phis the harsh dividend fire control systems; shoes, pro- 

part. Union Carbide. to 10 per cent news-has probably taken most perty and hotels. 

rtJ lhird biggest chemical pro- warned in February shareholders by sunrise In a letter to shareholders 

Sice?in the TJ.S. after Du Pont would fall following The company has been hit by earlier this year, the company 

ducer in tne mical< has to SwFr a severe downturn m demand explained that the outlook for 

itc own nrocess for r f L c W Fr illbu. Even in its weapons division, where 1982 was "laden with consider- 


rfnfpr in the U.S. after DU rom t orofits would fall following me onpiv uas wra oil u 3 earner uus year, me w»u pwv 

ducer in tne - has at to SwFr a severe downturn m demand explained that the outlook for 

developed its own process for SwFr 4.111m. Even in its weapons division, where 1982 was "laden with consider- 
ing polyethylene in the gas f^ e fL extent of the set- sales tumbled by 23 per cent, able uncertainties." 

phase. The acquisition of the \ * 

licence for the Montedison cata- , \ 

SISt'SSie Stahl suffers net deficit ' 

« a Sstituto Biochimico Itatiano qurVinaNCIAL STAFF 

Giovanni Lorenzim OBU, an i \ 

Italian biochemical concern, nas sWhl. the third per cent to 41.6m tonnes in Estel-Hoesch Werke to merge 

announced profits for 1981 of .. German steel- 198L _ a large part of their steel 

Ll.lbn (?°.83m) on t»rn°^^ ma |l of ^ Krupp ^ 1980 ^ am broke fSSS Ttetetel 

by 26 percentto LTibn. APUJ ^..suffered a net even at the net level, though it “J®™* 2S5 Swi3l ! n^ 

reports from Milan. loss \ DM \2m (846.4m) in reD orted an operating loss of grmg was established m 1972 


„ German steel- 

makf and V of the Krupp in 1980. Rrapp Stahl broke J5“*£SI5 SS^EstS 

induUal grip.. suffered a net even at the net level, though it SSfbfish^ in 1OT2 

loss \ DM 12m ($46.4m) m reported an operating loss of of the Nether- 

1981, Vd tMdeficit was con- DM 46m> with the last quarter JL the Second 

fined V Mmount only by of ^ yeax bringing losses at KL wSt Sr^i rtee£ 
^Kr mD8S ' 1116 this level of DM 90m. SK J^TiSET 


UC 1 LCUL WU TAiVlU Willi e 1 U “M - 

198L a large part of their steel 

m 1980. Krupp Stahl broke g— “ fits * 5fVS 


1 1981. W tliuBuwl 

ssM&r & Su ° kk ^ at £ "- a: 

Demag orders ^ SW? SSS?iTSM 

increase Siher raw materials and DM fi.07bn (823bn) from 

SSrgy coste, which outweighed DM 6JL6bn in 1980. Crude 

By our Financial Strff bi|^ r fim 1 “^^isatira higher steel prices and the steel production fell T 

J v,,T benefits of restructuring. cent to 4.91m tonnes, 

I s a e4^'R W^GeS Plans were announced re- iron ou^ut dedined 
^^oSSSfed ^the Mannes- ^eei outpuiter a fill of 5 cently for Krupp Stahl and cent to 3.09m tonnes. 

Sf p^c^fo B\SE — — 

Groth for WestLB Asia Bi , d f « r FreB 

Guenter MueUer, wngj .... ^ tplpTlhOTIP III 


jnefits of restructuring. cent to 4.91m tonnes, and pig 

Plans were announced re- iron output dedined 11 per 

C*n1,I anit nan* tn 3 DShtl tdTHlCS. 


ST? per cent to DM 3.73bn — ^ 

Groth for WestLB Asia Bid f « r Frenc l h 

^*J£E%uT£i ajter-tax,, 0* WestLB HK»sB6bn « «« year end telephone maker 

conference. Asia advance' 41 per cent from HK$2.Sbn a year earlier. jjy Our R nan dal Staff 

Overseas orders were to HK822.toS83.91m) in Credit volume exp^toi by S0CIETE Anonyme de Telecom- 
14 per cent in 1981 while iggl &om Hji 5m in 1930, 4 1 per cent to HK82.73bu (SAT) the French 

domestic orders fell by 10 ^ bank’s We^man parent, despite the bank showing con- manu f ac turer of teleoomrmmica- 

cent The foreign share on >ver- West a eu tsche eabank Giro- siderable restraint in its inter- has laundied a 

all orders was a record 73 per (West reported. national .credit business, - Slle< , a company which 


national . credit bus 
according to WestLB. 
Despite expectations 


LCUU * “V - — - -A - ar — — _ . TTOIIS eQUIliUlClili U<U m u aiviauu •* 

all orders was a record 73 per ^brsile (West reported. national . credit business, ^ for guec, a company whidi 

cent , . ■ . . , according to WestLB. spe cialis es in telephone and 

Herr Mueller said new orders The <J nS ® ra i n J 1 ^ Despite expectations of ^rrables. SAT, vddeh 

in the first three months of 1982 earnings was bed to the dm5 £ d economic growth in already owns 480.000 Silec 

were down on a jgr age * at expansion rf W Kong- &>utheast Asian share? or 22.6 per cent of the 

DM 830m. but added order based bank’s bug activities ^ offshoot is company’s capital, intends to 

inflow " can change sharply m the South n area. optimistic on business prospects acquire an additional 599^98 

from quarter to quarter. Trttal asse ts o«tT R Asia fnr 1982 shares by offering two SAT 

tsissfi ^ MatU "■ ^ to every seven SUe, 


avua — -7 ” 

bid for Silec, a company which 
specialises in telephone and 
power cables. SAT, which 
already owns 480,000 Silec 
shares, or 22.6 per cent of the 
comnanv’s capital, intends to 


Dutch 
shipping 
group sees 
decline 

By Charles Batchelor in 
Amsterdam 

VAN GMMEREN, the Dutch 
shipping group, achieved a 
practically unchanged profit 
in 1981 but expects a decline 
In the current year. It pr°* 
poses a final 1981 dividend or 
F12JH), taking its total pay- 
ment to as unchanged FI 3-50 
per nominal share. 

The company reported a 

1981 net profit of . F18l JJ 

(5343X1) compared wits 
FI 93-4m in 198L The marine 
and bulk storage divisio “ 
continued to make the larg^t 
contribution to profits, though 
the agency and! transport 
division also improved i» 
reCTlL Profit per share feU to 
FI 8.40 from FI 8^2. 

The- marine and storage 
divisions are expected to show 
a fall in earnings this year 

because of a decline in both 
markets. 

• Nij venial Ten Cate, the 
Dutch textile group, which 
has been largely responsible 
for introducing board sailing 
into Western Europe, is to 
link up with a major U.&. 

manufacturer. 

Ten Cate will take a 40 per 
cent stake in a newly founded 
company. Windsurfer Inter- 
national, Europe, with Wind- 
surfing International of the 
XJ.S. taking the remaining 
shares. The new company will 
be based In Oldenzaal, in the 
eastern Netherlands. 

Ten Cafe bolds a number of 
European licences to make 
and sell the Windsurfer sail 
board from the U.S. company, 
but has also begun develop- 
ing boards under its own TC 
brand name. The decision to 
hive off the Windsurfer 
activities has been taken to 
maintain the separate 
character of the two lines. 

• Nederlandsche Midden- 
standsbank (N3IB) is to issue 
FI 100m ($37m) of capital 
debentures to strengthen i* s 
asset base in line with the 
growth of business. The 20- 
year debentures will carry an 
11 per cent coupon and repay- 
ments will be made in 20 
annual instalments. Available 
in FI 1,000 and FI 5,000 
denominations, the deben- 
tures will be listed on the 
Amsterdam Stock Exchange. 


ts earnings 
dividend 



Tftis amounc&^pgars ^ a matter of record only . 


APRIL 1982 


U.S. $. 000,000 

Lear Sigler, hie, 


Revolving C^dit Facility 


Arrange^ 

Credit Suisse Firstloston Limited 



Funds provided^ 


Algemene Bank Nederland N.V. 
Bank Brussels Lambert (UJL) Lid. 
Banque de Paris et des Pays-Bas 


Commerzbank 


lam-Rotterdam Bank N.V. 
tionale a Luxembourg S^A. 


Bank 


Credit Suisse Urst Boston 

limited 

Qeditanstalt-Bantrerein 


Svenska Handdsbanken S.A. 


'liner Hwidels- und Frankfurter Bank 
\ Credit Lyonnais 

Credilsmsse (Luxembourg) SA. 


Heinwort, Beisson 

TAnitei 

riion Bank of Switzerland 


Agent Bank ■ 

Credit Sni^ Ifet Bosion limited 




BY FAY GfSTER IN OSLP 

BORREGAARD. the 
forest products, chemicals m 
foodstuffs group, “greased 
sales and profits m «8L Jg 
total return on <»puai 
employed fell to 9-6 
from 9.9 per cent in 1980. An 
unchanged 11 per cent dividend 
is recommended. ■ 

Total external sales reached 
Nkr 3Shn, compared with 
Nkr 3.3bn in 1980, with exports 
accounting for 42^ per cent of 
the total. Pre-tax profits, at 
Nkr 15lm (?24.75m) were sig- 
nificantly better than expected, 
and higher than the Nkr 143-2m 

On the outlook for 1982, how- 
ever. Borregaard is cautious, 
in view of the prolonged world 
recession, economic stagnation 
in Norway, and uncertainty 
about “ when a change for the 
better will occur." A 

The annual report says tiie 
forest products sector aid 
better. The market for the 
grades of cellulose Borregaoro 
makes was weU mainlined, 
while the rise m value of the 
dollar increased export earn- 
ings. _ , 

The market for fine grato 
of paper was generally weak. 
One of the group’s paper plants 
made a loss, for the second y«ar 
running, but another. s nraJJer 
mill continued profitably, 
partly owing to its wide range 
of specialities. 


Chemical . activities . as a 
whole' achieved 'ft' good prof* 
increase, much of it earned by 
the sulphuric arid plant In 
the speciality chemical section* 
I lgam products were particu- 
larly successful. Results for 
edible fats and on# were down, 
on the previous year, owing, to 
falling prices .and narrowing 
margins. 

Among the products that . 
Borregaard sells mainly in Nor- ; 
way, detergents a nd toiletries 

Norway's major forest pro- 
ducts, chemicals and food 
group, announced better 
than expected profits for 
1981, but economic stagna- 
tion and the world recession 
have prompted uncertainty 
about th e outlook for 1982 

showed good progress. Respite, 
for foods, particularly fresh, 
meat and meat products, were 
weaker however, mainly because 
of the steep rise, last year, in 
Norwegian meat prices. 

The rayon staple , fibre plant 
in Sarpsborg again made & con- 
siderable loss. Under an .agree- 
ment with the state Ind ustrial 
Development Fund, the . group 
■ received NKr 9.7m to . cove r 
current losses during the second 
! half of 1981. pending a survey 
of the plant’s propects by inde- 


pendent consulate Tfe . - 
suitaatf repeet 
closing the plant 
» m 

1988, howevwybwwasfe , 
are Involved; Ap$&f»oi*r* 
tion during ] 
investments totaifo* 
has been j 

Borregaard, : 

Industrial. Dd^NsaftatPiS 

■SStfStfcgtS 

agrowng to 

subsidy. “ : r r^“ ™ 
Borregaard - striu ^ 
-North Sea 

tion through ^; jnT; 

Nbco oil cons^timito^y^*; 
a partner tmife Tot fi®. 
activity again ylrided a m 
Borregaard «uL three 0&9 
Norwegian 

(Norges, ,-Bwnma. .and&Ss 
has applied^ dtoes-.jS-fe! 
licencee ifor ^romSing 
Sea areas ^ ^whhSi ti» NoriS2 
Govemment is ejected tn 
award jwon.- : v T ’^V= : 

The group-hi « 

major modenfisatioiraad onto 

sion pregrammes^^irbidi « 
make it more ■oonqHrtttre S 
increasing, ootpst capuhy m 
productivity, sari&.eusgf 
improving .proteAL^ 

Total investment .last' ^ 
reached" NET 36Sat. company, 
with NKr i9Bm.t^i98a. 


Fiat cautiously optimistic for 1982 


BY OUR FINANCIAL STAFF 


Honda and between Alfa Borneo wfaereeales fall fr about 40 


BMMWB 



















u.s. $100,000,000 


To the holders of : — 

INDUSTRIAL AMD MINING DEVELOPMENT 
DANK OF IRAN 

Floating Rate Notes due 1984 



In accordance with the provisions of the above notes 
Merrill Lynch International Bank Limited, as Fiscal 
Agent, has determined that for coupon No. 11 the 
rate of interest for the next period, payable on the 
21st October, 1982, has been fixed at 15*/ per 
annum. 

Merrill Lynch International Bank limited 

Agent Bank 


Republic of the Philippines 

Floating Rate Notes Due 1986 

In accordance with the provisions of tiwTTotes, notk* is 
hereby given that for the six mouth Interest Period torn 
21st April, 1982 to 21st October, 1982 tb© Notes will cany, 
an Interest Rate of 15£% per a nnum and the Coupon 
Amount per US S5,000wfllbe US S40Q3L 

Credit Smse First Boston limited 
AgentBank 


U.S. $25,000,000 


BankofTokyo (Curasao) Holding N.V 

us.$30,oayMO 

GUARANTEED FLOATING RATE NOTES DUE 1993 




Payment of the principal of, and interest on, the Notes 
is unconditionally and irrevocably guaranteed by 

. TheBankofTokyo,Ltd. 

' ( K a b ml rU K nhba Tolyo Glnko) 

In accordance with the provisions of the Agency Agreement 
between Bank of Tokyo (Curacao) Holding N.V., Th* Bank of 
Tokyo, Ltd., and Citibank, NA^ dated Ifith October. 1978, noUce 
is hereby given that the Rate of Interest has been fixed at 
p ju. and that the interest payable on the relevant interes t P ayment 
Date, 21st October, 1982. against Coupon No. 8 will be USJ79J4. 


The Industrial Bank of Japan^ Lunited y 
London — 

• Floating Rate London-Dollar Negotiafajev . 
Certificates of Deposit due 21 st OctoberrTSwy 

In ncrorrlarK^ with the provisions of the Certificates, 


21 st April, 1982 

By: Citibank, N.AV London, Agent Bank 


CmBAtKO 


21st April, 1982 to 21st October, 1982, thoQxtifi cate&V°U - 
carry an Interest Rate of 1541-% per annum. The t«cv^ 

Interest Payment Date will be 21 st Octobfflt,1982. . .» . 

Credit Snisse First Boston limited -r. ?v 
AgcntBank 
















v “s.^r t' '»r. 



-jJjTIK. INTL, COMPANIES & FINANCE 


Vlrt 

oo 


rs* ■- 


-. ... *" '11,1.;, 


"'.V 




•'*? 




\ .> t 


h/"~ 


Money market boost for 
Kuwait investment bank 


BY JAMS DORSEY fti KUWAIT 


■ ..KUWAIT Foreign Trading Investment Company (KEC) managed three issues, cttfead 

T ‘ yoptractm g • aaa Investment (ffld the Kuwait international managed four issues and co- 
- ^ reports a . Investment Company (KHC), managed 38 i 

'—■l" ?■■■ L ? * - ($3Qmj Ret profit in has acquired a reputation for nominal vali 

1981,.. icompared to .KD8m‘ — “ — — *- 

■"v. in 1880 . ■ -Total "assets 
• i.otf the ■ company, grew by 101 

1 ' >]q ? :zr.l ceo*. according to the 1881 


... j/r^uuioal report from KD289.6m. 

^^:'..-X$lbn)in 1980 to KD601.6 hl ’■ 
t.T» . JKPTOKs- -board -has pro- 
s , L posed a dividend- b£ KTiftm 

^,,JKFTC£IC .is.. the largest .of 
. ;; “'"iijx,- ^Kowaat's- three major invest- KD225m the previous year. 
, l ^7>. ment banks, known in the 
1 -r. >i --•••■- 


active participation in Euro- 
currency business. . Unlike KIC 
and KUC, KFTCIC is 80 per 
cent government-owned. 

Last year witness ed a par- 
ticular expansion in KETCICTs 
money market activities.* Cus- 
tomers’ deposits amounted to 
KD457m In 2981 compared to 

In . 


issues, the total 
value of which 
to KD753m 


amounted 
(?2;71bn). 

• KFTCIC has also been active 
in direct investment a|u l real 
estate. The company has stakes 
in the ' Bank of Bahrain and 
Kuw ait. United Bank of Kuwait 
UK, the Arab Latin American 
Bank, toe Banco Airahe 
Espanol and in various, con- 
struction 1 and investment com- 


... ... ... — — an effort, to intensify' its 

' ' V;.-;. .p l a re as ■ .the “ toxee "activities. in toe fi eld o f market- panies and industrial ventures, 

- .KTs. KFTCIC, like the Kuwait able securities, KFTCIC lead mainly in the Arab world. 


V* »:*t - 

.p ■*- 


Wah Kwong profit up 10% 


.. -fa 

■-p. 


BT ROBERT JpOTTRBJL tN HONG KONG 


' . -1 S, 

i 

- — ~WAH -KWONG Shipping ‘ and’ in.eariy 1982, while disposing' depression similar toibat seen 

" r-rvi/I. B > Investment- Company (Hong of" five older vessels last year, in 1974-75.. The tanker market 

l—'Kong) . has reported consol l- Contracts for five., new ships has also been weak. - 

• •• ^ l dated - net profits for 1981 -of - were placed in 1981, to give He sees little prospect of re- 

. . ...... " or; .>w .-^J3K5g 144m - (U.S;? 24.8m), a 18 : the group a total tonnage- of covery.tMs year in bulk dry 

„i 37z^>er .pent : increase : over fee 2.73m- tons deadweight - on. cargo or tanker -.markets. Dry 

:-.-n.'' n V 3 eft previous. .yBari— A final- dividend' completion. cargo shipping may bottom out 

^ili T33=of 24 ’ cents per share & pro-- Mr Tsong-Yeo Chao, Wah in the next one to two years, 
. t '. ’V rdzs? posed, making a total of ' 34 Kwong’s chairman, reports that while fee tanker * market' "will 
-h- .‘'cents against an adjusted 39.9 - the freight market was hit by need several more years and 
-:r scents. • : : - recession from the second substantial reductions in world 

.i- .The group took delivery- of 10 quartet of 1981 onwards, and tonnage before -there can be 

newbuil dings in 1981 and five bulk shipping sank into a any recovery. 


NZfood 
group in bid 
for part of 
Waitaki 

By «W Hayward In Wellington 

WATHE INDUSTRIES, the 
giant New Zealand food pro- 
cessing group has made a 
NZ$23-5m - (ILS.S218.8m) bid 
for a 243 per cent stake in 
Waitaki NZ Refrigerating, 
the country's largest meat 
processing company. 

The offer of 285 cents for each 
ordinary Waitaki share repre- 
sents a 56 cent premium on 
. . Monday’s closing price fra: 
. Waitaki. 

Waitaki NZ Refrigerating is a 
huge. meat processing 
company owning several 

iri an i g tr 

The Waitaki board said it 
believed Wattles offer was not 
generous and was 
opposing fee move. 

At its last balance sheet date of 1 
* October 1981 Waitaki had an 
issued share capital of 
NZ$39.8m. -About 40 per cent 
' of the company’s export lamb 
-■ . is pre-packed in New Zealand 
-and Watties believe this 
would be a natural tie-in with 
its own world-wide processed 
- foods exports. 

Last week Watties reported a 
21 per cent increase in first 
half profits. . 


or 198] 


•fs>. 

■ *• 
• ~-u'_ 


c :* 
»s. 

t 

ii 
r 

jv 

•J-ec rs 

-izZ-r.y. 




■ it,-- 


:E-'. 

■ w ~&ir: 


.'■CO 



LONDON INTERSTATE BANK LIMITED 

Bartl«i.Houw; 140 London Wall, London EC2Y SDN. 

Tel: "01-404 : 8899 Telex: 884161 . UBLDN’ G 

Extract from Audited Consolidated Accounts 
■ ' ‘aistMareh ' 

" 1982 . ■ 1981 

-. . :. £*000 £000 

CapTtil -and reserves — ..... 7fiB3- . 7,108 

Subordinated, debentures ...: ...» - 


Total 'shareholders* .interest 

Current and deposit accounts ^ 

Other Qafiilitles " 

NM»6 
120,409 
3J925 . 

7.108 

94,168 

3224 

Total .liabilities — 

134*340 

104300 

Cash, money at call and* short ootlce, " 

CD’s, deposits with banks 

Short and medium term Jo*ns and advances 
Other assets 

40,304 

84,904 

7,132 

37328 

6H234 

5,938 

■ v 

Total assets . h ... h «m.«J.....m...ui....... 

134340 

104,500 

Profit before taxation 

Profit after taxation 

733 

49S 

636 

420 


Mahindra and Mahindra 
lifts earnings and payout 


BY ft. C MUR THY IN BOMBAY 

MAHINDRA AND MAHINDRA 
has .registered a’ 23-5 . per cent 
increase, in net profits for 1981 
despite; : inflationary pressures 
.and stiff competition, and has 
lifted its dividend from 18 per 
cent to 20 per cent Sales 
income rose by 33 per cent to 
Rs 2.63bu " <3280m) from 
Rs I-97bn and ' pre-tax pn^ts 
rose by 28 per cent to Rs 176m. 

- Mahindra is a well-diversified 
company manufacturing Jeep- 
type four-wheel drive vehicles, 
tractors, steel ' products, 
electronic ’ instruments and 
machine tools. The company 
has forecast higher sales for 
this year. " 

The board said in its review 
of the year that vehicle pro- 
duction has doubled in fee last 
five years. 

The company concluded an 
agreement last year . with 
Peugeot of France for the 


phased manufacture of fuel- 
efficient diesel engines. 

The company’s Rs 758m 
modernisation programme has 
been approved by term financial 
institutions. A lout agreement 
for US$15m was signed with. 
International Finance Corpora- 
tion, Washington and another 
for £2. 89m was signed with 
Grmdlays Bank for an ECGD 
line of credit in December 1981. 

Mahindra exported 4,400 
vehicles and 79 tractors in fee 
year, with the bulk of vehicle 
shipments . to Iran. Export 
including . local small-scale 
industry products earned 
Rs 200m. ■ 

-The company's research and 
development division has 
designed a medium sized truck 
and a 40 bp tractor. It has also 
commissioned a research pro- 
ject for improving the fuel 
t ransmissi on system and chassis 
of Jeep vehicles. 


THIS ADYEEnSEMENT APPEABS AS A, MATTER OF RECORD OXZS 



Banco Itau S.A. 

U.S. $70,000,000 

Financing under 


CrnCORP INTERNATIONAL GROUP 
THE ETOWA BANK, LTD. 

BANCO 2NTERNAC30NAL DE COLOMBIA 


SECURITY PACIFIC BANK . 

BANCO BO ESTADO DE SAO PAULO &A. 
BANESPA 


LEAS MANAGERS 

XJBRA BANE LBflTED 
BANCO TOTTA & AZORES 
BANCA CATALANA SA. 

MAKAGEBS 

THE ROYAL BANK OF CANADA INTERNATIONAL UM3TED 
MANUFACTURERS NATIONAL BANK OF DETROIT 


BANE OF NEW SOUTH WALES 
NEW YORK BUNCH 


I2BRA BANK UMHED 
CXIXHANK, KA. 


.• • CtVMANACEBS . . 

SPASEBANSEN OSLO AKERSHUS 

rosns psovmED by 

. THE KYOWA BANK, LTD. 

THE ROYAL BANK OF CANADA INTERNATIONAL 
T.rur run 


MANUFACTURERS NATIONAL BANK 
* OF DEEROIT ■ - 

SPAiOEBANXEN OSLO AKERSHUS 


BANCA CATALANA SLA. 

REPUBUCBANK HOUSTON KA.- 

KASSXH BRANCH 

BANK -OF- IRELAND 
CAIMAN -BLANDS 'HUSOi . " 

flSTEEE EICHIS C HE LaNDERBANK 
■ | trniw fiEsn XSCHAFT 

banco nNio fc sano mayor 

CSEDlTO IIAIIANO 

NEW mt HUNCH 

BOSENTHAL INTERNATIONAL UMHED 


LIBRA BANK UMHED 


BANK OF NEW SOUTH WAXES 
(HAND CAYMAN 

SUN BANK NA. . . 


BANCO DE SANTIAGO 

BANCO CAFETEROrSA. 

(PANAMA) 

HHL SAMUEL ft CO. UMHED 

BANCO AMBROSEANO OVERSEAS 
TJiuiTin t 

BANK LEUMI 1£ ISRAEL GROUP ‘ 
FIRST NATIONAL BANK IN SI. LOUIS 

TAT LEE BANK UMHED 
SNGAPOU 

ARRANGED BY 


LIBRA BANK LIMITED 

AGENT 


BANCO DE SANTIAGO 


SEC U R I TY FACinC BLANK 

BANCO DO ESTADO DE SAO PAULO SA, 
BANESPA 

BANCO INTERNACTONAL DE COLOMBIA 
(NASSAU) LIMITED 

BANCO TOTTA ft AZORES 

LONDON BRANCH 

. CREDIT COMMERCIAL DE TRANCE 
(PANAMA) SA. 

BANCO NAQONAL DE MEXICO, SJL 

- BAN AMEX - 

MTBC ft SCHRODER BANK &A. 


BANCO COMMERCIAL ANTIOQUENO SJL 

PANAMA. 

BANQUE BELGE POUR LTNDUS1RIE SJL 
PRXVA1BANKEN A/S 

CRAND CA>"MEN BRANCH 

UNTIED OVERSEAS BANK UMHED 
SINGAPORE 


CITICORP INTERNATIONAL GROUP 


NOVEMBER M, DH 


if I'iiiiippiffi 

. - - ; . 

. i • 


-’- 3S 

— • 

.. . 1*. 


n . . ’ rM 




■ i \ 


■ r 1 




V- 


v 

s* »’.;{■■■ 


2 



t 9 8 2 


Morgan Grenfell have received the Queen's Award for 
Export Achievement 1982. Having previously received the 
Queen's Awaid in 1975, we are honoured to have-achieved 
thfe distinction once again. 

. - We wish tofiiank ail our cUentsand staff for making this 
Award passible. ; 



& CO. LIMITED, 


^ Great Wnche^StreeLlxmdonEKP2A5C. 

At^^.Btjgori^Cairo'CSfBCffi'EtSnbmgh’FTankfurt-Gensva-Gisrnsey'Jaroy 
^3^- Melbouma- Milan- Moscow- New York • Palis- Quito- Santoga-Srgapore 
•- Sydney* Tdcyo 


NEW ISSUE He Notes bate net ban registered under the United Slates Securities Act cf 1933 and may rat be offered or soli APR IL 1982 

Z- r i~- - 6j the United States of America or to nationals or residents thereof. 

These Notes haring been sold, this tmammeeman appear* at a matter of record aefy. 

U.S. $100,000,000 

GMAC Overseas Finance Corporation N.V. 

(Incorporated wilhlimiled liability lathe Netherlands Antilles) 

-- Retractable Notes Due 1st Aprily49 97 

Unconditionally guaranteed as to payment 
of principal and interest by 

General Motors Acceptance Corporation 

(lucapomedbttbe State qf New York) 

Credit Smsse First Boston limited 

Banqae BraxeUesLambert S. A- CMffitLyomuds ~ FJentsclie Bank Aktiengesellschaft 

Bidder, Peabody International limited Morgan Stanley international 

Orion Royal Bank limited Salomon Brothers International 

J. Henry Schroder Wagg & Co. limited Swiss Bank Corporation International limited 

Union Bank of Switzerland (Securities) Limited Yamaichi International (Europe) Limited 

p 

BnkNcda3HdN.V. Amolnferatianl Ambold 2 nd S. BIek±rocder, Inc. BnLe Habey Smart Shields JuBbq Raw TrionwHnunl 

LiaM ■ hMliJ 

BueiUGotinfe BmaORon Bufcof America Intft»ati<mal naBmktfBauBlLlU. 

■ * — B»A GHtariHer, Kgrz, BaagtBer (Ototob) Bank Le»la<cnnfibhal Lid. ‘ - Barib Lend Ie-fctadGxw^ 

BnAMeaftHapeNT BaAcfTo fcyelg temgogt! B a i±haw Cehrcdgr Bcthnaan Banqne Arabe K IotEimlionafe d^mKtissanrat (BjLLL) 

Buyn C i ufwTr dnliiaBatHBE&A. Bangoo dcl’IsdocUse ct deSflcz . JjnrfflAnctgSA 

BmpBlABfrDrqfiB BacpeNatksfik de Paris BmQoe de Ncvffize, Sdilnmbe^tr, Mallet Bm^acde Paris tides 

. *. _ Btaape SeWtaatL'Em o p la Mi e 'BsBqpe Warns - BatfugBrothas ACo^, 

Bqakk IhfoOida-lgdWcdRlSifi Biy gls d iETjin i Wnmt Girozpitiale Baycrkdic Verdnsbauk Bear, Steams ft Go, 

iUnAM Ainkatxufistili 

JoLB«ra*o^,GcssJer ACb. Bergen Bant B erfaerBank Berfiner Etodds-ond FranUtotfr B»afc Mylh Eastaan P atneWefeber 

bcomtedLUnd 

B^IlUniilln Cxzocttb ££&. ctase Manhattaa Qw n te a lB aftla teiiaa c iia l Qirfs<i«m< Bank oeSjedithasBe C3BC 

»M1 1MM Om LW 

CkUnBnk Cnonbift Cem pa ga ie de Banipie ct iTIiiT rtf g sfWiit g, CM Cont&mtal BBnas BEmfcWan ft JUS 

Ahtiui)> t »K .- . UatM 

Cr^CteranecMdeRaDce ' et Oumaerdd OifititaNard - ' Credit SdacFtoBeste(Asi^ 

C nftH fai r BiuLwaefci DaM chi Rnpo Inte mtimBl lUmDnH Deftrfck & Co. 

Lfiritod LkaW 

- r • - • D0ta,R*aa OmavCnporatian DmUos Scarifies Anes DresSoerBanfc 

IMAl QMvkdttM ftlilluLimlfcifcrtr 

E gc rfmft M lr -W^ri nrE EDDHobaiaie Ear^>«B Bagm g Cunpaay fag latcn afiMl tl Fiance Cegossoadiaftfidie ZortragankAG 

Afinbftrapffamfi ~G^^gra)e nnd Banfc for felar cteLi ge faei Spatfcaagoi r^lflamfariwIntmmiwialOHp.^ . HambrosBaA 

new AhwaUak i 

HmMrtuet fCW. (Orasets) Hes&cfeljwjestak EGnSomriftCfc TI»: Hoog^oog Bwk Grocp E. F. Hettailntemfllional Inc. 

IRIUBnikHi KaMSbOnte-Paikki Xmdfabne(Cto LdmanBni there Kola Loft tocnmttoal. Inc. LTCBlatcmafiinai 

LMad 

MrifKtnr er s Hansrer MarfB bUrnuf l wl & Col . B-MstderseeLSotaftCo. MMsobfetil BhIc (E^ope) SA. SnatriMonfaKaftCa. 

Morgn Grate!! ft Ca. TbeNhbi.SecarifiesCcbf^BrmllidL . Noanre Inf emafiool NartdgrtaA e NarJh* Bat 

“““ .t..™,.,. OtaBOBt* LUu 

flri ei rr l rf i tirf i r Tfadrrfmft Pfcreon, Bddriag ftKereon N.V. Prinflamten A/S Rabobank Nededand L. F. RotbscMJd, Unterterg, TowWn 

S ma M w i fiml Sw ii i l i B Sm^riuBnk. Bfc Mw, BMaq t r, Hwr * * rn . .. Skandm»rfst*.EastndaBanLoi 

ft c ittn G cafralc i Sociefe Gcactale feBnipr SA SodficScqmabe ft. Bimpn Stnass,Y)nnlHiDftCB. 

S wA i Ha Mdirniw Hofan Bask of Fmtaod IM. Yabaad SJuniuriiJm SrawWft Vercats-Mrf Westbaii J.Tntdbdft Cb. 

mil Mil 

M.»LWartag *ftfaAmagw Wirfg&Cb. S.G. W 2 rtarg&Co.IAi, WeEtfiatafaeluleAaAC^nnfaale Wood Gandy 



Datscfce Glrozeatralo 
-Dentscbe Konunaaftaak- 
’ Drexd Bnaluia Landwit 





Financial Tiiaies Wednesday April 2i ISSS : r 


ConpaaSes and Markets 



MARKETS 


NEW YORK 


AGP induatriM... 35% 

AMP 18Ir 

AHA — Eg 1. 

ASA 33% 

AVX Corp • 19% 

Abbot Labs,. 3Qsa 

Acme Clove, 1 2 2% 

Adobe Oil ft Ci«,' 18% 

Advanced Micro.: 34% 
Aetna Ufa & Cm. 42t b 
A hmanson tH.F.y 11 
Air Prod ft Chem 55% 

Akzana. 10 

*!;»ny Int...,. ", 247 B 
Alberto Culv....,J 14 1* 

Albertson's : 278a 

AlcanAJuminltim 1 18% 
Alco Standard.,, [ 20 

Alexander 39% 
Aimheny Inti ' so 

Allied Carp 331. 

Allied Stores 50% 
A 1 1 is- Chaim an _ 147# 
AJphaPortd 10 14 

Alcoa 26% 

Amal. Sugar 1 48 

Amax.„, 27 

Amdahl Corp ' 20% 

Amerada Hess,.. 18% 

Am. Airlines.- 14% 

Am. Brands- 423* 

Am. Broad casTgi 36 U 

Am. Can L..... 26s# 

Am. Cyanomid... 27% 
Am. Elect. Powr' IB 

Am. Express 50% 

Am. Gen. insnce. 1 41% 
Am. Holst A Dk. J 1S7» 
Am. Home Prod. J 374 
Am. Hosp. Suppy! 454 
Am. Medioal Inti | 22% 

Am. Motors 34* 

Am, Nat. Reseat 34% 

A m.Petflna. ' 61% 

A m. Quasar Part-j 9% 

Am. Standard....' 27 

Am. Stores ; 384 

Am. Tel. A Tel.... 55 % 

Ametek Inc. SB 4 

Amfac i 235t 

amp ; sale 

Amstar —1 226e 

Am stead Inds-.J 24% 
Anchor Hocks-. -r 16% 
Anheuser-Busch 1 474 
Aroher Daniels... > 1B7 b 
A rmoo ! 19% 


April April 

ft 16 


35% , 36 
184 18t B 
14 . 14 
E64 : 2B4 
334 345® 

194 194 
3QSa . 294 
224 214 
184 184 

344 : 24a, 
427 B 1 434 
11 ' XI 

554 35 

IQ . 9Sa 
m 25 
144 J 144 
278 b 274 
184 : 18 

30 | 197 b 

298b ; 294 
30 ; 304 

334 ' 334 
306b ' 294 

147 B : 19 
104 . 9t b 


Co umbla Cu M ; 33 1 334 
Columbia Wct-i 70 1 69 
Combined Int™.: 214 • 21 

Combuetn, Eng..; 285a I 264 
Cm with. Edison-! 214 j 214 
Comm. Sate | it#_., 61% 60% 


Comp. Science.... 124 

Cone Mills. ■ 30 

Conroe 26% 

Cons. Edison «..J 37% 

Cons. Foods. i 38 v 8 

Cons. Freight. ,.i 384 

Oon.Nat.Gaa : 44 4 

Consume rPo we r' 178g 
Cent Air Lines...' 4% 
Conti. Corp-....„! 27?g 

Conti. Group < 30Sg 

Cent Illinois- 1 297 B 

Conti. Telap 174 

Control Data 31 


Cooper lnds...,...[ 

Coors Adolph . 

Copperweid | 

Corning Glass-.... 
Corroon Black.-. 
Cox Broadcast’s. 

Crane - j 

Crocker Nat. 

Crown Cork. 

Crown Zel| 

Cummins Eng—' 
Curtiss-Wright.. 

Damon 

Dana 

Dart A Kraft. 

Data Gen 

Dayton- Hudson - 

Deere...- 

Delta Air. _. 

Denny’s...... 


40 • 40% 

117 B I 12 
264 I 25 
464 : 46 
204 204 

30% 31 

27T b 28 
29 287a 

234 . 244 
234 234 

39% ; 384 
394 1 39% 

7% 73, 

25% ' 257 8 

514 1 61% 

35 ■ 56 

36 34v# 

341; 34 

32% I 324 
34 24 


Armstrong OK.. 

Asamera Oil. 

Asarco : 

Ashland Oil 

Asad D Goods-. 
Atlantic Rich.... 
Auto-Data Prg.. 

Avca 

Avery Inti...- 


.1 16 I Z57 B 
,i 84 1 84 
.[ 21 [ 214 

J 21 Tg 22 4 
'.I 234 I 334 
.' 384 40 

. 27 I 264 
.. 16% ! I64 
.i 254 | 29% 


Avnet — : 49 7g 

Avon Prod .• 254 

Baker Inti 304 

Balt. Gas ft El 267g 

Ban Cal J 244 

Bangor Punta—.i 17% 
Bank America....' I84 

Bank of N.Y... 414 

Bankers Tst-N.Y.' 344 

Barry Wright 164 

Bausch ft Lamb- 44% 
BkxtTravLab.... 34% 
Beatrice Foods...' 204 

Bekerlnds | 67g 

Bell ft Howell 1 22i a 

Bell Industries... 1 177g 

Bendfx ! 53% 

Beneficial 17% 


Beth Steel 

Big Thae Inds 1 

Black ft Decker .. 

Block HR 

Blue Bell 

Boeing. 

Boise Cascade 

Borden 

Borg Warner 

Branlff inti > 

Briggs Strain 

Bristol-Myers 

BP 

Brackway Glass. 
Brown Forman B 

Brown Grp ! 

Brown ft Sharp-. 
Brawn g Ferris....: 
Brunswick -.1 


224 I 234 

22% ] 22 7g 

13% 13% 

344 ! 344 
244 ! 24% 
187g 1 184 
284 ! 284 
33 4 1 35% 
26% i 27% 
2 1 24 

237g 23 Tg 

374 > 564 
214 , 20 
144 i 14lg 
384 ' 56% 
304 30 

157s , 16 
324 ' 3 lag 
174 18 


Bueyrus-Erie ....- 16 
Burlington Ind ... 224 
Burlington Nrthn 46% 

Bumdy ■ 20 

Burroughs 35% 

CBI Inds. - 1 33% 

CBS 427g 

CPC Inti 374 

CSX 47% 

Campbell Red I- 12% 
Campbell Soup... | 35 
CampbellTagg... 23% 
Canal Randolph.. 284 

Can. Pacific 84% 

Carlisle Corp 25 

Carnation • 31 

Carp Tech 33% 

Carter Hawley...] 13% 

Caterpillar- i 464 

Celanese Corp --I 55 

Centex— 32 

Central ft Sw ] 157g 

Central Soya 114 

Central Tel Util...] 30% 

Cartclnteed : 18 

Cessna Aircraft-1 184 
Champ HomsBIdl 2% 
Champ lnt——...| 164 
Champ Sp Plug..! 7 t# 

Charter Co- 87 B 

Chase Manhattan! 58% 
Chemical NY—. 354 
Cheese Pond — I 37 
Chicago Pneum-I 137g 
Chrysler.——.! 4ig 
Chubb. 43% 

Cigna • 54% 

Cincinnati Mil— .| 344 

Citicorp I 277g 

Cities Service.....; 314 

City Invest 23% 

Clark Equipment] 23 
Clave Cliff# IronJ 244 

Coro x | 14 

Cluett Peaby 1 164 

Coca Cola. 34% 

Colgate Palm—] 18 t 8 
CoIUbs Alkman... 12% 
Colt Inds -I 244 


Dentsply Inti I 17% ; 

Detroit Edison....- 117 B ; 

Diamond Inti [ 384 ■ 

Diamond Shank.. 21% . 

DGlorglO .....I 10 1 

Digital Equip t 82% ' 

Dillingham I 12 4 

Dillon ; 207 S 

Disney (Walt} i 57% • 

Dome Mines. j 12 

Donnelly <RR) i 454 ■ 

Dover Corp 24 t 8 

□ow Chemical....! 22% 

Dow Jones.— 1 46% 1 

Dresser 23 

Dr. Pepper. 11% 1 

Duke Power 234 

Dun ft Brad 664 : 

DuPont. ; 35% ‘ 

EG & G 17 


Ptiartrt 

Eastern Airlines. 1 
Eastern Gas ft F 1 
Eastman Kodak. 1 

Eaton 

Echlln Mfg I 

Eckherd Jack... 1 
Electronic Data. 
Elect. Memories! 

El Paso 

Emerson Elect...! 
Emery Air Fgt.... 

Em hart. 

Engelhard Corp I 


Enserch...._ ' 20% 

Esmark 447 b 

Ethyl ' 204 

Evans Prods. 184 

Ex Cell 0 234 

Exxon 284 

FMCw 27 

Faberge. 15% 

Feddeni 3% 

Federal Co. - 22 

Federal-Mogul... 21% 
Fed. NaL MorL... 9 
Fed. Paper Brd... 28 
Fed. Resources-' 1% 
Fed. Dep. Stores 44% 
FI elders ct Ml—... 22 

Rrestons., ! 10 

1st Bank System, 31% 
1st Charter Fin -! Bt b 


1st Chicago,.......' 194 

1st City BankTex; 244 

1st Interstate 29% 

1st Mississippi....! 94 
1st Nat. Boston.-' 247s 

1st Penn 3% 

Fisons 54 

Fleetwood Ent.. 134 

F!ex!-van 154 

Florida Pwr ft L- 314 

Ford Motor 21% 

Foremost Mck... 31% 
Foster Wheeler..' 12% 

Freeport McM 15% 

Fruehauf 174 

GAF 137g 

GATX ; 304 


Gan net | 

Gelco 

Gen Am Invest...' 

Gen Cinema ] 

Gen Dynamics...., 
Gen Electric—. 

Gen Foods 

Gen Instrument-! 

Gen Mills 

Gen Motors 1 

Gen Pub Utilities 

Gen Signal. | 

Gen Telep Elec...; 

Gen Tire., j 

-enesco j 


Genuine Parts.. 

Georgia Pac 

Geosource 

Gerbes Prod.... 

Getty Oil 

Giddlns Lewis.. 

Gillette - 

Global Marine.. 
Goodriah IBF/.. 
Goodyear Tire. 

Gould 

Grace 

Grainger iWW). 


35% | 35% 
1B7 8 184 

147® ] 147# 
41Tg j 41% 
29 | 29% 

644 I 637# 
37% 1 36% 
38 384 

404 59% 

414 414 

54 54 

37% 374 

30% 304 

164 19 

44 4% 


Indices 

NEW YORK —DOW JONES 


Qt. AtL Pac. Tea.! 6 
Gt. Batins Pet.-. 3 
GtNthn. Nekoosa 1 37 u 
Gt WestFlnancl.j 10 u 

Greyhound- I 144 

Grumman.— ' 264 

Gulf ft Western. J 164 


Gulf Oil 32% 

Hall (FBI— ' 28% 

Halliburton.—,-.' 357# 
Hammermllj Ppr 26 
Handleman 13% 
Hanna Mining..... 32% 
Harcourt Brace-: 137# 

Harris Bancp i 29 

Harris Corp ...—..I 52% 

Harsco I 184 

Hecia Mining—. 8% 

HelraiHJi- ! 31 

Heller inti ' 18% 

Hercules • 20 

Herehey 40 

Heublein - 404 

Hewlett Pkd 44% 

Hilton Hotels— 36% 
Hitachi— | - 


Holiday Inns 1 26% 

Hally Sugar ... • 46% 

Homestake— 254 

Honeywell 87% 

Hoover 8% 

Hoover Uni-..—- 16% 
Hormel Gao.v.... 23 
Hospital Corp. ...I 324 

Household Inti i 174 

Houston Inds. 194 
Hudson Bay Meg 14% 

Hughes Tool. 27 

Humana, - ' 25% 


Husky Oil - 

Hutton (EF)— 

iCInds - 

IU Int-. 

Ideal Basic Ind.. 

ideai Toy 

ICI ADR 

Imp Corp Amer.. 

INCO— 

Ingersol Rand— 

Inland Steel 

Intel 

Inter First Corp.. 

Intarlake 

Inter North - 

IBM- 


MGM — ! B 

Metromedia iBOB 
Milton Bradley—] 177a 
Minnesota MM— 56 

Missouri Pac ■ 60% 

Mobil - 215# 

Modern Merohg. 94 

MohasCO 107# 

Monarch MIX. | 18% 

Monsanto — 664 

Moore McCmrtL. 214 
Morgan HP) — .j 66 

Motorola- J 63% 

Muntingwear M .i 13% 
Murphy (GO 10% 

Murphy Oil ! 21 

Nabisco Brands. 34% 
Nalco Chem ] 45 

Nat Can ..! 187# 

Nat Detroit ; 21% 

Nat Diet Chem-i 227# 

Nat Gypsum. ; 20% 

Nat Medical Ent is% 
Nat Eemlcdustr.! 23% 
Nat Service Ind. 1 24 4 
Nat Standard — , 127# 

Nat Steel- 19% 

N etc mas. ia% 

NCNB • 13% 


Schlltz Brew 
Schlumbeger— . 

BCM | 

Scott Paper-.—.' 

Seacon — | 

Seagram —.1 

Sealed Power— : 
Searle (GD)..,,.. J 
Seam Roebuck.. .j 

Security Pan 1 

Sedco ! 

Shell Oil..—. ; 

Shell Trane. 

SherwIn-Wms-.-l 

Signal 1 

Signode 


Inti. Flavours 

Inti. Harvester— . 
Intlnoome Prop.' 

IntPapar 

Int Rectifier. 

Int Tel ft Tel ! 

Irving Bank. 

James (FS) I 

Jeftn-Pilot 1 

Jewel Cos I 

Jim Walter. ' 

Johnson Contr.... 
Johnson ft Jns— 
John than Logon. 1 

JoyMnf J 

K. Mart ! 

Kaiser Alum- ; 

Kaiser Steel- | 


Kaneb Sendees-! 15% 
Keufman>Brd— . B% 

Kay Corp J 10 

Kellogg - • 247# 

Ken name tal 32 

Kerr-McGee > 297# 

Kldde - I 22% 


Koppers. > 15 

Kroehler— : 74 

Kroger. ! 29% 

LTV— i 14% 

Lanier Bus. Prod, i5t b 

Leor-Slegler. 28 

Leaseway Trans^ 27% 


Lenox ‘ 

Levi Strauss 

Levitz Furntr 

Libby Owens Fd. 

Lilly (Eli) 

Lincoln Nat : 

Litton Jrrds. 

Lockheed- • 

Loews I 

Lone Star Inds ...' 
Longs Drug Strs.' 
Louisiana Land 
Louisiana Pac....! 

Lowenstein - 

Lubrtzol 

Lucky Strs. 

MiA Com. Inc— ' 

MCA 

MacMillan j 


37 • 374 

23 234 

25 25 

224 22!' 

62% 62% 
404 40 

50% 497# 

52% 531, 

98% 98% 

21% 2D, 

27% ; 26% 
314 314 

177# . 17% 
28% 28% 
20% 20% 
147# IS 4 
21 .% 22 
53 63 

15i# | X64 


Mac I 

MforsyHanovar-J 
Manvllle Corp.— 

Mapco 

Marino Mid 

Marriott ! 

Marsh McLenn„.i 
Marshall Field-.: 

Martin Mtta 1 

Maryland Cup.... 

Masco 1 

Massey- Fa rgn.,.' 
Mass Multi. Co rpi 

Mattel 

May Dept Strs...[ 


33% 34 

31% : 31% 
13% 134 

30% ! 32 
22% . 224 
39% 1 38% 
34% 34% 

297# ' 294 
30% 314 

347# ; 347# 

334 ' 33 

8% 24 

18 184 

18 I 16% 
277# | 277# 


Maytag -.1 

McCulloch I 

McDermott (JR).. I 

McDonalds ! 

McDonnell Dougi 
McGrow Edison-I 

McGraw-Hill I 

McLean Trukg ... 

Mead _i 

Media Gonl— .{ 

Medtronic | 

Mellon Natl 

Melville 

Mercantile Sts 

Merck 

Meredith 

Morrill Lynch 1 


27 ' 27 

10 % : 10 % 
24% 244 

684 i 68% 
367# . 371# 
30 29% 

504 514 

12% 12 4 

204 204 

37% 374 

39 4 384 

364 36% 

46% 45% 

601# 607* 

74% 74% 

557# 554 

29% f 29% 


NCR- ’ 

New England El- 
NY State E ft G— 

NY Times- 

Newmorrt Mining' 
Niag. Mohawk. . < 

NICORinc. 

Nielsen (ACi A.,.' 
NL Industries 
NLT 

Norfolk ft Westn 
Nth. Am. Coal..,: 
Nth. Am.i Philips. 
Nthn. State Pwr. 
North gate Exp...] 

Northrop 

NWcst Airlines,. | 
NWest Bancorp- 

Nwast Inds 

N westn Mutual-; 
Nwast Steel W...1 

Norton 

Norton Simon . ..; 
Occidental Pet,' 
Ocean Drill Exp.' 

Ogden 

Ogirvy ft Mrth. 

Ohio Edison 

Olin ' 

Omark. 

Oneek ..] 

Out board Marl n 0 ' 
Overseas Ship. , 
Owens-Coming - 

Owens-Illinois 

PHH Group 

PPG Inds 

Pabst Brewing., 
Pac. Gas ft Elect 
Pac. Lighting — 
Pac. Lumber 

Pao. Tel. ft Tel 

Palm Bosch 

Pan. Am. Air 

Pan. Hand Pipe.. 1 
Parker Drilling.-, 
Parker Hanfn—. 

Peabody Inti 

Penn Centra) 

Penney (JC> : 

Pennzoll 1 

Peoples Energy j 

Pepsico 

Perkin Elmer ; 

Petrie Stores | 

Petrolane ; 

Pfizer 

Phelps Dodge .„' 

Phfla Elect 

Phlbro 

Philip Morris I 

Phillips Pet I 

PlUsbury — 1 

Pioneer Corp 

Pitney Bowes .. 

Pitteton 1 

Planning Res'ch ; 

Plessey 

Polaroid : 

Potlatch i 

Prentice Hall 1 

Procter Gamble.] 

Pub. Serv. E ft G. 
Pub. S. Indiana.. 

Purex 

Purolator 

Quaker Oats 

Quanex 

Questor 

RCA 1 

Raison Purina—. 

Ramada Inns 

Rank Org. ADR... 

Raytheon 

Reading Bates ... 

Redman Inds 

Reeves Bros. 

Reich hold Chem 

Republic Steel...' 

Rep of Texas 

Reach CottrelL, 1 
Resort Inti A— 1 

Revco IDS ( 

Revere Copper .. 

Revlon ] 

Rexnord 

Reynolds(ftJ) \ 

Reynolds Mtls..,i 

Rite Aid- ' 

Roadway Exps...] 

Robbins (AH; ; 

Rochester Qas... 

Rockwell Inti 

Rohm & Haas.....! 
Rollins. 


Holm 30% 

Roper Corp 10% 

Rowan 12 

Royal Crown ...... 184 

Royal Dutch 337# 

Rubbermaid 1 38% 

Ryan Homes j 15 

Ryder System— ; 30% 
SFN Companies-; 19% 
SPS Teohnol'glesi 17% 
Sabine Corp-.:—; 34% 

Safeco I 39% 

Safeway Stores -i 29 4 

St Paul Cos 48% 

St Regis Paper,.; 264 

Santo Fe inds 1 157® 

Saul Invest 8 

SQxon Indus. 1% 

Sahsrfng Plough.' 30 t b 


46 ' 434 

27 • 26% 

16% 16% 
35 ; 33 

374 . 37% 
134 1 134 
30 . 304 

48% • 487# 
26 | 267# 

27% 287# 


Simplicity Patt-.; 

Singer- 

Skyline 

Smith inti — 

SmlthKline Beck 
Sonesta Ifttf ....... 

Sony...-— — 

Southeast Ban kg 
sth. Cal. Edison- 
Southern Co— 
Sthru Nat Res.— 1 
Sthn. N. Eng. Tel.' 

Sum Pacific 

Sthn. Railway—.; 

Southland ! 

SW Banosharcs- 
Sperry Corp — ... 

Spring VHUs. • 

Square D 

Squibb 

Std.Branda Paint 


7% J 7% 
14% f 144 
147# 144 

30% 304 

69% 701# 

104 104 
13% I 13% 
16 ! 16% 
31% 1 314 
13% : 15% 
23% I 237# 
447g 444 

32% l 62% 
914 I SO 

334 ; 32% 

254 ; 254 
29 1 284 

864 . 264 
267® : 264 
344 i 344 
23% 23% 


Std Oil CUfornlaJ 304 
Std Oil Indians...' 414 

Std Oil Ohio-. ] 34% 

Stanley Wles 15% 

Stauffer Ctiem ...; 20% 
Sterling Drug—' 27 
Stevens UP) — ' 164 
Stokely Van K..... 314 

Storage Tech 27 4 

Sun Co 35% 

Sun det rand .......; 37 

Superior Oil ! 30% 

Super Val Strs.,.; 18 

Syntax. — 384 

TRW 504 

Taft 304 

Tampax- 374 


Tandy 1 314 

Teledyne 123 

Tektronix.. • 54% 

Tenneoo — . 277# 

TesoraPat J 204 

Texaco ! 297# 

Texas Comm. Bk; 33% 
Texas Eastern— .1 48% 
Texas Gas Tm..„) 27 
Texas Instr'm'ts.' 887# 
Texas Oil & Gas..' 297# 
Texas Utilities.—] 22% 

Textron- 1 237 b 

Thermo Electro- 1 16% 
Thomas Betts.,- 53% 

Tidewater 23 

Tiger Inti • 67# 

Tima Inc. 54% 

Times Mirror ' 43% 


Timken- 

Tipperary- 

Tonka 

Total Pet 

Trane 

Tran *am erica., 

Trnnsway- 

Trans World 

Travelers 

Trioentro! 


Tri Continental, 
Triton Energy— 

Tyler - 

UAL- 

UMC India. 

Unilever N.V. — 

Union Camp 

Union Carbide— 


18% ' 18% 
124 > 12% 
16% ; 164 
21% 214 

77# 1 8 

57% 68 

484 484 

; 464 : 46% 


204 204 

23 Tg 23% 
30 304 

31% ; 31 7g 
414 40% 

104 104 

13 • 127j 

22% : 22?g 
12 % 12 % 

3 • a4 

35% 36% 

15 1 154 

134 : 13«s 
66% 654 

11% , 114 


Union Oil Cal — 
Union Pacific— 

Unlroyal 

Untd Brands 

Utd. Energy Res., 

US Fidelity G 

US Gypsum 

US Home 

US Inds 

US shoe— 

US Steel. 

us surgical.. 

US Tobacco - 

US Trust. — : 

Utd. Technolgs- 
Utd. Telecomms. 

Upjohn 

VF 

Vartan Assocs— 
Vemitron - 


Virginia EP 

Vulcan Metris— 
Walker (Hi Res ,. 
Wal-Mart Stores. 

Warn a co 

Warner Comma.- 
Womer-Lambt . 
Washington Post 

Waste Mangt 

WelsMkts 

Wells Fargo 

W.Point 

Western Airlines 
Westn. Nth. Amr., 
Westing ho use.,.; 

Westvace 1 

Weyerhaeuser— .j 


Whoeiabretr F 
Wheeling Pltts... 

Whlrlpool 

White Consoltd-.i 

Whittaker 

Wickes 

Williams Co 

Winn-Dixie Str.,.- 

Winnebago 

Wise Elec Power- 

Woolworth 

Wrlgloy - 

wyiy 

Xerox 

Yellow Frt Sys ...• 

Zapata - 

Zenith Radio 


344 I 34% 
177# : 17% 
29 : 2B% 

274 ' 27% 
25% 254 

44 4% 

19% : 19% 
344 | 35% 
6% ■ 5% 
304 ' 304 
17% . 17% 
52 ! 307# 

94 8% 

387# • 39 
144 137# 

184 184 

15% , 16% 


] April . April i 
; 19 ■ 16 l 


0 Industr'ls .B4B.M 845.« 
H.me Bnds. ! B9.1J 59.06| 
Transport- |348.43 346.57 

Utilities 11135 112.27. 

Trading Voi , 


April April April 1 April 
IS 14 13 I 12 j 


835.09! 841.04i 841.32 

1 I 

58.59' 58.721 58.52 

J 1 

34B.37j 348.E4I 347.47 1 
112-07| III.82! 110.92' 


1982 ]Slnce Cmpll.t) 
High Low ' High | Low 


882.52 785.47 1 1051,70 1 41.22 

<«lll 18/St (1111/73) (2/7/32) 

58.08 65.87 . — . — 

fIB.’O (12/21 : I 

588.48 | 314.58 447.58 12.52 

17/1) | (8/81 00/4/81) 18)7152) 
112^7 > IDS.E1 185.32 18.0 

(18)4) ; (15/1) (20/4/88) <28/4/421 


000- r '58.470 63,890 

] i ! i 
ft Days high 8S4.26 low 838.66 


45,160 48,660; 46,76o! — 



April 19 

April 12 i 

April 2 

Year ago (Approxi 


6,61 

6.61 

6.64 

5.51 


STANDARD AND POORS 

; I |' 1 j | j 1982 ISlnceCmpnt’n 

April April April j April April April j ; r — 

I 11 16 I 18 14 13 ! ia High Low High • Low 


el — — 1 — , 1 “ — nv 

Indust'ls— I 151.24 128.77 I29J24( 128.561 I2B.7J| 128.78' 137.28 1IB.41 | 160.96 3.S2 AN 

l , J ] | i4/ll I (8/3) ;l28l11/a!(M/B/S2i AN 

Composite H8.IS1 116.81 116.33 115.85 IIE.H 122.74 • 107.34 [ 140^2 4.407 _ 

! I I 1 1 <4(11 r8.5) !)28MU8ni il/B/82) •— 


AUSTRALIA j i 

All Ord. (1/1/801 <77.4 1 476.1 • 477.3 j 478.8 1 &». 5 (4/1) 455.6 (10/5) 

Metal ft Minis. (1M/I0) I 344.0 ; 343.2 : 543.7 546.2 { 426.1 (6/1) ( S22J (2/4) 

—I- 1 

AUSTRIA 1 , 1 i 1 

Credit Aktien (2/1/82) 1 52.52; 52.10 52.33 52.24 56.06 (4/1) 1 52.16(18/4) 

BELGIUM 7} j ! ! ! : ) 

Belgian SE (31(12)65) i 89.24] 99.71; 99.55 99.70'. 102.48(5/4) } 86.42 )20/1) 

DENMARK ! ) ’ ' ' i ! 

Copenhagen SE (1/1/73) I 129.81! 120.83' 121.55 12U1{ 126 JH 126/2 1 { 112.90(8/5) 

FRANCE ' j l I I J ” ~ 

C AC General (26/ 12(61) 107.00 ' 107.00. 106.40 106.801 107.0 < 19/ Cf 88.8(4/1) 

Ind Tendance (51/12/81) ■ UTS > 117.00 115.20 118.001 124.0 (18/2) | 97.7(4/1/ 

GERMANY I ! ! ! 

FAZ- Aktien (81/12/58) 286.80 934 JT 2MJ1, 234J5, 210.45(5/41 I 218.86(18)1. 
Com mcrzbank(Doc 1955); 72IJ 1 7)9.40! 716.40, 715JW ; 729.8 (5/4) j 6*,7 (IB/% 

HOLLAND i ' ■ ] 

AN P-OBS General (1970) 91.5 ] 90.80- 90.9 91.70 92.4 (5/4) ! 84.0 (Oil) 

ANPCBS Indust 11970) 71.5 71.»! 70.E 1 72.00 , 75.8 (5/4) . , 65.2 (4/1/ 


i April 15 / April B | Mar. 31 .Year ago (approx 1 



1 S.71 

[ 6.73 

5.92 

4.S6 

Ind. PJE Ratio 

7.77 

7.81 

7.57 . 

10.59 

Long Gov. Bond yield 

: 13.11 

13,34 

1338 

13.07 ‘ 


HCNG KONG 1 i i 

Hang Seng Ba n k (51 /7iS4 1 1195. 77|l1 B0-S5 1182.48 ,1 201^9 1 1446^2 (12,1) ; 1128.85(9(5) 

fTALY : ' I | ‘ ( ■ 

Banca Comm ltal.(1972) } 192.75 194.54] 191.691 189.47 - 212.68 (19(31 ! 181.46(13/1) 

japan** i ; 1 i " i 

Dow Average (IE/E/48) 7268.15 71 35-21 '7 129. 68 7(20.66; 7926.65(27/1) ' 6688.H (I7«* 
Tokyo New SE (4/1/68) 1 552. 17i 52SJB; 525L9fi| GS4J)5< 583^ (27/1) 690,70 1 17/5) 


NY. S.E. ALL COMMON 

r- w.-sisr 


Rises and Falls 

Apr. IS Apr. 16 Apr. IS 


NORWAY i I ; , ; 

Oslo 8E (1/1/72) ! 1 12^7] 1t0.Blj 111.26 113.70. 130.59 (2671) ' 109.12(1/4) 

SINGAPORE ~ i ! ■ 7 ' 

Straits Times /1BB6) 755.46; 749.66 1 743.87 747.39- 810.76 (6/1) | 687,49 .(9/5) 



1.S73 

1,872 

1,858 


. 794 

935 

| 816 

Falls - 

. 639 

458 

584 

Unchanged 

. 439 

449 


New Highs 

66 

55 

! 28 


SOUTH AFRICA 
Geld (1958) 
Industrial <1968) 


(U) - I454J1I «W! BR9JS (S/1) 1 4114(915)' 

(U) i - 590. B i 6B0.7; 711,7 (8/1) ] B63J (29/5) 


MONTREAL 


i April April ' April 1 April > 
; 19 .16 IB 1 T4 ; 


Industrials I ZB8.94 1 288.90! 290.40 : 2S8-6B 1 532.79 i4.l) 270.46 (16 J) 

Combined I 274J0; 274.Z8> Z75JE31 277.60 316.09 (4.1) 299.09 (16.4) 

TORONTO Com posite' IW.Bli 1618 J17!'lfiM^)i TbSOJS. 1958J (4.1) 1657.6 H6.5) 


SPAIN i . J I 

Madrid SE (30/12/811 100.961 101.4oj 101.47: WU8] 107 j*5 (9/2) 1 99.17 (0/1) 

SWEDEN - j — — — — 

Jacobson ft P. (1/l/BB) B74JZ9; 5E9.2&j 58UM S6UJ4 B5&52 122/1) 669 JS (19/4) 

SWITZERLAND * ! I ’ _ • 

Swiss Ban k Cpn.(5 1/12/SB) 2B8.4o' 280.BW 260 J 290.4 263.1 (11/1) 242.3 (11(5) 


NEW YORK ACTIVE STOCKS 
Change 

Stacks Closing on 


Asms Lila 
IBM 

Texaco ... 

NLT 

Gcosourca 


traded 

pries 

day 


1. 252.103 

42% 

-»« 

Sears Roe ... 

1,140.600 

63\ 


Sxxon 

806.900 

29% 

-% 

Oxy Pete 

693.000 

27% 

-1% 

Mattel 

678.400 

49% 


Sctilitz 


Change 

Sleeks Closing on 
tndsd priefl day 
666.100 19% +% 

657.B00 28% “% 

587,800 25% -% 

561.300 IS +1% 

481.900 16% — 


Capital Inti. (f/f/7D) { (u) j (u) | 152.9 j 152.8 | K7J (4JT) { 1».T(T7/3| 

(**) Sat Anri! 3 Japan Dow 7,333-32. TSE 539.68. 

Bass values of all Indices are 100 except Auatnlla All Ordlnenr and Metals— 
SOO: NYSE AH Comoo— BO: Standard and Poort— 10s and Toronto— IJWte the 
last named based on 1975. t Excluding bonds. 1 400 Industrials. 8400 
■ndustnala plus 40 UtUltlea. 40 Flnandsb and 2D Transports- c Closed, 
u Uruvsilebla. 


Dow off 1.14 at midsession 


STOCK PRICES remained easier 
at midsession, reflecting market 
concern over the Falklands crisis 
and over nesotiations between 
the White House and Congress 
on a Federal Budget com- 
promise. 

The Dow Jones Industrial 
average was off L14 at 844.94 on 
volume of 39.07m shares (43.5m). 
The NYSE All Common Index 
was 20 ceots lower at $67. 

Analysts said the market's 
decline was moderated by a drop 
in the Fed funds overnight rate 
to 141 Per cent from 14$ per 
cent. As a result. Banking, 
! Utility and other interest-rate- 
sensitive slocks were steadier. 

A strengthening yen also 
; caused gains in the Japanese 
stocks, with Matsushita _jip S2f 
to $39 i, Honda Motor $21 to $29, 
Sony SI to $14 and HUaeM Sli. 
to 524. 

Active Citibank rose f to S284 
and DleboUl jumped $2| to $60}. 
Both reported higher earnings. 

Chock Fall O* Nuts rose ? to 
$13}. An investment group 

beaded by Mr Jerry Finkelstein 
bought 6.1 per cent of its stock 
and may seek management 
changes. 

THE AMERICAN SE Market 
Value Index was off 0.77 at 273.23. 
Armatron rose { to $5} after 
reporting higher earnings- 

Canada 

Stocks were lower at mid- 
session. The Composite Index 
eased 3.3 points to 1,601.3 on 
volume of L8m shares. Eight of 
the 14 indices were down. 

Cominco, ‘ off C$1 at CS40}. 
reported a first-quarter loss of 
92c a share, compared to an 84c 
profit in the same period a year 
ago. 

Northern Telecom, unchanged 
at C$54}, said its first-quarter 
earnings were higher but it bad 
seen some signs of weakness in 
its businesses. 

Among the bigger changes. 
Mitel fell CS1| to CS20. First City 
Financial rose C$1 to C$19}, Pine 
Point Mines fell C$1} to C$33, 

Closing prices for North 
America were not available 
for this edition. 


and Phoenix Oil eased 

} to CWSf; 

Among the Indices. Metals 
dipped W» to 1415.7, Golds 
dropped 12.& to 2,3024, OU and 
Gas was down 125 to. 2,7818 and 
Pipeline® dropped 21.4 to 1,356.9. 


Germany 


Leading shares improved in 
moderate trading as foreign 
buyers returned to- the market 
The. Connnerthank Index added 
•6.4 at 721.8, hut many shares 
finished off their highs as trading 
quietened in the last hour. 

Banks firmed. Deutsche rose 
DM 2.40 to 288.50, Commerzbank 
DM &30 to DM -153 and Dresdner 
DM 3 10 DM166. 

Chemical's were - also in 
demand, with BASF dosing 
DM 0.4a higher at DM 137.20, 
Bayer DM 0.60 at DM 127 and 
Hocchst DM -1.20 at DM 126.70. 

In higher Motors, BMW added 
DM 3.50 *t DM 210. Daimler 
DM 2.90 at DM 2S1.80 and VW 
DM 230 at DM 14A50. 

Among Engineers, Unde rose 
DU 5 to DM 287 and MAN 
DM 4.50 to DM 169. 

-Prenssag finished up DM 3 at 
DM 20220 after early uncon- 
firmed rumours over a sharply 
higher dividend payment on 
1981 results, following last year’s 
DM 6 payout. Me tall geseli s chart 
closed unchanged at DM 213 
after opening DM 5 lower. 

Paris 

Prices were - mixed In 
moderate trading with no clear 
trend affecting the market 
Banks were . steady and Motors 
slightly easier. 

In mixed Poods, Begfeta Say 
fell FFr 5 to FFr 210 while in 
Motors Valeo declined FFr 3 to 
FEr 237. 

In mixed Electricals, Matra 
fell FFr 42 to FFr 1,280 but 
Badiotechniqhe rose FFr 16 to 
FFr 310. 

- Foreign.*? fell, with the excep- 
tion of Japanese which were 
firm. 

M3an 

Wices closed mixed In nervous 
and volatile trading, with losses 


oatnumbering gains on deepen- 
ing domestic political uncertain- 
ties. ' • ’ 

Banks, Insurances and Finan- 
cials tended easier, with. Bastpgi. 
losing IA at LI 72, GencraB off 
LL000 Jjt L1433D0 and Medio- 
banca L800 down at. L723CO- 
Centnle gained US against the 
trend. In Industrials, OByciU. 

' Minlama, lbdgas, ludumeWU 
and Mondadori lost ground -but 
Fiat, both Pirtlits asd.l.Sfiia 
Vbcosa held early gains while 
Montedison dosed ' fractionally' 
firmer at L12S.5 <Ll£5). 


Tokyo 


Prices rose sharply to light 
trading as buying interest was 
revived by the yen's recovery, 
against the dollar, the overnight 
dip in- US. interest irates and 
Wall Street's steady tone. 

The Nikkei Dow average added 
122.94 at 7,258.15, on volume of 
310m shares- (200m). The Stock 
Exchange index was up 8£1 at 

532.17. 

Market leaders set the pace, 
followed by Steels, Light 
Electricals. Shipbuilders: and 
Machine Makers, hut Properties 
weakened. 

Matsushita added Y55 at YS70, 
Sony Y110 at Y3.430 and Honda 
Y54 at Y71Q, but Seiyn Store 
ended unchanged, after an- 
nouncing a slight income gain 
In its results. 

' Hitachi, Toshiba and 
Mitsubishi Electrical firmed and 
Nippon Steel rose Y3 to Y159. 

Australia 

Prices closed at their highs on 
news of Britain's unfavourable 
reaction to the U.S. peace plan : 
for the Falklands crisis. The All 
Ordinaries reversed an early fall' 
to close 1.4 up at 477.4. 

Resource stocks fel lin early 
trade after a sharp drop in gold 
prices abroad but rallied later. 

In leading Miners, CRA rose 
5 cents to AS2.73, Western 
Mining 1 2 cents' to . AS3.62. 
Bougainville 1 cent to A$124 
and Oakbridge 5 cents to AS1.1S. 

BHP gained 8 cents ta AS7.48. 
ANZ . was 2 cents higher at 
AS&S7, Bank of NSW was steady 


at A$2i68 and Natlosal was up 2 
cents at A82J0. My*r Emporium 
was 3 cents higher el .W and 
Woolworth was unchanged at 
,A$L64. ' . ... 

Sure prices closed higher dn 
some buying interest in selccticc’ 
■moderate" tradiiw mih hish c r 
Hong Kong market advicCi aidic^ 
sentiment 

Fraser " and- Meavc rose 2° 
cents to S$6.»U. Straits Trading 
20 ceots to SS9>3. t'nited Motor 
Works IB cents to SS53J. Traitf- 
marco IB cents to S5SI 91. Ho»s 
Leong Finance 10 cents to SS7.40 
and Overseas Union Bank 13 
cents to $?340. 

The Straits ' Times Index 

690 points h> 755-45- 

Hong Kong 

Stocks closed . tiiefeer on 
sporadic late buying, after prierc 
bad held steady in the awmios 
in line with Wail Street Trading 
was subdued ahead of today's 
Queen's Birthday market holiday 

The Hang Sen^ [tides added 
13,12 points at U9377. with 
leaders, most -actively traded, 
accounting for most of the rise. 

Among leaders, Cheung Kong 
closed op 20 cent* -at HKS15.80. 
as did HK Bank at HK3U. HE 
Land rose 5 cents to HK36.7Q, 
HR Wharf 10 cents to HKS4 5§. 
Hutchison Whampoa 50 cents tp 
HRS 14.70, Jardine IHalhe^on 20 
cents to HKS16.70 and S»lre 
Pacific “A" 10 cents tij.HKS10.4U. 

Elsewhere, Garris n investment 
gained 2.5 cents at HKS4.05. New 
World 5 cents at HK$4. Sun Hung 
Kai Properties 10 cents at 
HKS6J20. Tal Che KQg 2.5 ccnrs 
at HKS2.20 and Sino Land 1 cent 
at 68 cents. : 


Johannesburg 


Gold shares closed quietly 
steady at their day's lows in line 
with the bullion price. 

Heavyweights lost up id R1.75. 
as in President Brand at R32.25, 
while Produrers priced ut 
and lower shod I/ctwecn 5 end "-3 
cents?. . -Other Minings- 
Financials eased m sjmpath" 


CANADA 


BELGIUM (continued) 


HOLLAND 


AUSTRALIA 


. April ' April 
! lfl * 16 


April 20 . Price + or 
: Fis. . — 


Price + or 


JAPAN (continued) 
Pneb 

April SO Yen 


AMOA Inti..-..-.. 1 1B% 

Afaltlbl- 181# 

Agnico Eagle 1 6% ' 

Alcan Alumin-.^ 22 
Algoma Steel-...' B3% 

Asbestos 12 iz 

BK. Montreal 21% 

Bk. Nova Scotia. 22»i 
Basic Resources 3.85 

Bell Canada . 18'e 

Bow Valley 14% 

BP Canada. 32% 

Braacan A.,.—.. 18% 

Brlnco - , 9.12 

B.C. Forest B% 

CILInc. 24 

CadMIacFairview 8% 
Camfkj Mines-... 95; 
Can Cement 9% 


Petroflno- 

Roy ale Beige... 
Soc. Gen. Banq.. 
See. Gen. Beige., 

Soflna_. 

8o(vay 

Treeton Elect... 

UCB- 

Union Mini ere... 
Vi el lie Mont 


; 4.820, —55 

’ 9,600! 

2,705; -80 
1,400 —58 
, 3,640 -20 
2,125 -20 
• 2,760 -40 
. 2,060 —65 

816 

. 1^90 —25 


Can N W Lands... 

Can Packers. 

Can Trusco. 

Can imo Bank.... 

Can Pacific 

Can P. Ent......... 

Can Tire.... 

Chieftain 

Cominco- 

Cons Bathat A... 
Corrt. Bk. Canada 
C Osaka Resro'ea 

Costain 

Oaon Devei 

Denison Mines .. 
Dome Mines.—. 

Dome Petroleum; 
Oom Foundries A 

Dom Stores 

Domtar. ' 

FaloonNick<t]_.v. 
Genstar- — • 

Gt-WestLife. 

Gulf Canada 
Oul (stream Res... j 
Hawk Sid. Can....l 


24% 24% 

29% 39% 


10 101# 
30% 30% 

16% 16% 
19 . 19% 

64% • 64 
14% 14% 

210 .210 

14 | 14 

3.10 3.16 

27# j 9 


DENMARK 

April 20 

Price +or 

_ * L. . _ 


IBS : 

Battle* Stand— .. 

379 ; .... L. 

CopHondelsbank. 

128.2 

D. Sukkerfab 

340 -4/1 

Danske Bank 

125.4 .. . 

East Asiatic 

101/1 - L 

Forande Borygg- 

606 -0.4 

Forenede Damp. 

427.4 -1.6 

GNTHldg 

273 *1 

JyakeBank 

173 ; .. .. 

Nord Kabul. .. . 

145.2 *i.a 

Novo Ind 

1,635 -50 

Papirfabnkkor ... 

90 ... 

Privatbanken..... 

134.4 

Provinsbanken... 

113.4 . . 

Smidth (FI) 

220 . -1. 

S. Berendsen 1 

495 

Superfos 

100 


ACF Holding. \ 

.79.0 

+ 0.2 


84.7 


AKZO — . 

29A' 

+ 0A 

ABN-. .... : 

291.0' 

+0J 

AMEV] 

- 86^ 


AMRO 

60 JO 



19731 

+ 3 

Boss Kalla. 

49.B 

1-0.3 

BuhrmaruvTet — 

46,3 

-0.7 

Caland Hldgs — 

•33.1 

-0.3 

Elsevier NDU ... . 

148.5 



120 JS 

+0.5 

EuroCommTst .. 

75.7 


Gist. Brocades... 

71.2 

-2.4 

Helnaken 

55.2 

-0.2 

Hoogovons 

17.0 


Hunter Douglas- 

6.9 

■*o:? 

Int-Muller 

24.3 

KLM 

104.8 

+1.8 

Naarde’s ... — 

26.7' 

-0.3 

Nat Ned cert.. .—. 

112.6 

+0.1 

Ned Cred Bank... 

56.0 

-OJ 

Ned Mid Bank-... 

126.0 

+ 5.5 

Ned Lloyd — ... 

121.5 

-0.5 

OceGrinten — ... 

110.6 


Ommeren (Van/- 

26.5 

-1.9 

Pakhoed...— 

42.5 

-0.5 

Phillips. — ... 

Rijn- Schelde 

25.0 

+ 0.4 

24 

-S 

Robeco 

211.0 

+ 0J 


122.6 

-0.3 

RoMnco 

208.5 

- 1.7 


149^ 

+0.1 

Royal Dutch 

91.0 

+0.0 

Slavonburg ■ .. .. 

84.5 

+ 0,8 

Tokyo Pac Hg— 
Unilever 

2D 1.0 

-2 

155.5 

+ 0.7 

Vikinq Res. — 

120.0 

+ 0.2 

Vmf Stork 

45.1 

-0.9 

VNU 

57.0 

-0.5 

Volket-Stevfn 

35.0 

+ 0.5 

West UtrBank — ■ 

93 

+ 1 


Hollinger Argus-] 27 
Hudson Bay Mng; 18 

Hudson's Bay ] 23 

Husky OH 1 7% 

Imssco j 39% 

Imp Oil A. 7 23 

Inoo 15% 

IndoJ j 13% 

Inter. Pipe 16% 

Mac Sloedei 21% 

Marks ft Spencer 9% 

Massey Forg 2.60 

McIntyre Mines- 32% 
Merland Ex Dior.. 6.25 

Mitel Corp. 21% 

Moore Corp— 377® 

Nat. Sea Prods A 7% 
Noranda Mines.. 16i® 


1.88& +4 



Nthn. Telecom... 
Oakwocd Pet.....! 
Pacific Copper...' 
Pan can Petrol— 

Patino 

Placer Dev_ / 

Power Corp. i 

Quebec Strgn — ; 

Ranger Oil ........ ' 

Reed Stands A— I 

Rio Algom | 

Royal Bank. ■ 

RoyalTrustco Ah 
S ceptre Res...—. 

Seagram I 

Shell can oil ; 

Steel of Can A : 

Feck B : 

Texaco Canada-] 
Thomson News At 
Toronto Dom bkj 
T raiuCan Pipe .... 
Trans Mntn. Oil A> 
Utd. Sisco Mines- 
Walker (H) Res...; 
Waatcoat Trans-' 
Weston (Geoj..— 


84% ' 64% 

10% I 10% 
2.06 ’ 2JM 
66 | 65 

19% ' 19% 
11 % / 11 
11 ‘ 11 
2.60 I 2.70 


CSF/Thomsom ... 

182.0 

-4.8 

C/e Ban cairs 

199.8 

-0 Jt 

C/a Gen Eaux 

310.5j 

-8.3 

Soflmeq 

116.51 


Crousot Loire- .. 

75.9, 

-3.0 

CFP - 

122.0i 

—2.8 

DNEL 

44.6' 

+ 0.9 

Dumez .. 

1,070 

-14 

Gen.-Occidental. 

372.8 

-0.2 


April 20 . Price +or 
! Ure — 


Asti cur Gen-..—.; 143JM 
Banca Com'le -..! B6JB0 

Bastogl Rn - 172 

Ce Titrate -.! 4,796 

CredRo Varetiho] 8,190 

Rat- 1.716 

Rnslder. ] 40 

Tnvest- ■ 2,721 

Italcementi- 36,100 

I tal aider. T20* 

Montedison——' 125.3 

Olivetti' . J 8,620 

P ere in Co 2,612 

Pirelli Spa — —J 1,382 

Snla Viscose. 705 

Toro Astic- 16^80 

. do. Prof. 1 3,250 


ANZ Croup ...... 3.87 

Ac row A list- 1.69 

Ampol Pet. L.36 

Assoc- Pulp Pap - 1.45 

Audlmco 0.07 

Aost.Comk.lnd . 1.58 

Auat Guarani • 2.20 

Aust. Nat. Inds.. 2.SB 

Auat. Paper 1.82 

Bank NSW £-68 

Blue Metal ........ ^30 

Bond Htdga • l;** 

Bonn 2.47 

WviRe Coqdv 1X4 
BramMas Inds. . . 2.10 

Bridge Oil £-8 

BHP 7.« 

Brunswck Oil. 0,21 

CRA 2.73 

CSR 3.15 

Carlton ft Utd , 2.07 

CastlamalneTvs. 3.45 
Cluff Oil (Aust ...: 0.48 
Do. Opts — .. ’ 0.50 
Cockburn CsmL 126 
Coles iG-Ji... .2.20 

Comalco— 1.75 - 

Costa Hi 1.7Q 

Cruaader Oil.. • 3.6 

Dunlop .. 0.9J5 

Elder Smith GM 3.00 
Endeavour Res.. 0.25 
Gen Pro Trust. . 1.54 

Hartogen Energy £‘60 

Hooker— — — 0.95 

ICI Aust 1-49 

Jennings 1J!3 

JimblBna SOcFP 0.19 

Jones rD' 1.43 

Kia Ora Gold. .... 0.11 
Leonard OH . . 0.20 

MINI....- 2.85.-. 

Meekatharra Ms 2.4 

Meridian Oil. 0.15 

Monarch Pet 0JJ9 . 

MyerEmp 1.29 ; 

Hat. Bank 2.50 

Newt— — .: 1.65 • 

Nicholas Kiwi— 1.30 • 

North Bkn Hill 1.85 

Oakbridge— 1 1.16 

Otter Expel- ' 0.60 

Pan con - 1.55 

Pan Pacific 0.11 

Pioneer Co— : 1J19 

Queen Margt G. 0.08 
RecklttftColn....' 1.80 ' 

Santos 4.60 

Sleiqh IHC) 0.80 

Southland M'n’g. 0J10 
Sparg os Expel. 

Thos. Natwide. 

Tooth 


<K( 
4 QJ)2 1 Kl 




AUSTRIA 


April 20 j Prtco j + or 


Creditanstalt ..... 

Landerbank 

Fer/mooser- 

Semperlt 

Steyr Daimler—.. 
Veltsoher Mag- 


211 r -l 
190 -1 

2 90 

69 44 

161 >4 

196 ,t 


Roussel.Uclaf . ,.;29l Js| 
Skis Rosslgnol..../ 683 i 
Telemech Elect J 765 | 
Valeo.— I 237 1 


GERMANY - 

I i 

April 20 ; Price | + or 
: Dm. — 


AEG-Tefef. -.!■ 

Allianz Vera——] 

BASF - 

BAYER. ! 

Boyer-Hypo | 

Bayer-Vereln / 

BHFBank : 

BMW | 

Brown Bovert —.[ 
Commerzbank... 

Conti Gumml • 

Daimler Benz—..! 

Degussa j 

Demag I 

D'sche Babcock.' 
Deutsche Bank.../ 

OU Sehult- i 

Dresdner Bank...] 

GHH- I 

Hapag Lloyd | 

HoechsL — ' 

Hoeedi ' 

Hotzmann (PI-.../ 

Horton... 

Kali und Satz L 

KarstadL — 


Bergens Bake . Ill ' 

Borregsard • 117.6; 

Oreditbank ! 134 

Elkam ; 50 i 

Kosmos 885 ; 

, Norsk Hydro i 307 | 

J Storebrand i 212.5 


SWEDEN 


April 20 | Price + or 

Kroner — 


HONG KONG 


April 20 Price ' + or 
I H.K.6 — 


16.6 | +0 


AGA — 

A/ra-LxvaJ — 

ASEA 

Astra 

AUaa Copco 

Bolide n 

Collulosa 

Electrolux B 

Ericsson 

EsaelteiFreei 

Fagersta 

Fortla (Free) 

Mooch Dom 

Saab-Skanla 

SandvlkiFreel— 

Skandta 

Bkan Enskflda - 

SKF B. 

St KoppaiUerg.. 
Sven Kandelsbn 
Swedish Match.. 
VolvotFreoi 


■ 203 j 

J 208 
./ 160 
I 560 

.! lie : 

208. ; 

.1 230 i 
,« 90.6- 
J 204 .' 
.1 125 ! 

: 132 ’ 

,1 118 i 

j 120 ! 

.133 ; 

,! 192 j 
.] 460 ! 

,! 199 , 
125 1 

: 280 _j. 

' 99.5; 

,1 107 ' 
146 < 


no 

HK Shonghi Bk...l 11.0 
HK Telephone....: 25J 
Hutchison Wpa...; 14.7 

JardlneMath i 16.7 

New World Dev.. 4.0 
O'saaa Trust Bk..! 5.45 

SHK Props. ' 6.2 

Swire Pao A ' 10.4 

WheelTs Marct A.' 5.6 
Wheei'k Maritl'e, 5.0- 
World Int. Hldgs.' 2.7 


SINGAPORE 



April 20 

Price 

+ or 


e 


Boustead Bhd ... 

2.22 


Cold Storage 

3.74 

^o.iM 

DBS- 

7.85 


Fraser ft Neave- 

6.7 

+ 0.5 

Haw Par 

2.99 

+ 0.01 

Inchcape Bhd .... 

2.03 

+ 0.05 

Malay Banking... 

6.4 

+ 0.05 




ChJBC 

12.2 


Sim* Darby 

2.26 

-OJI 

Straits Trc 

9.85 

t0.2 

UOB 

4.1 

-o.w 


JAPAN 


April 20 


Price ,+ or 
Yen ; — 


BELGIUM/LUXEMBOURG 

I I 

April 20 I Price + cr 
Fra. - 


ARBED 

Banq Int A Lux_. 
Bekaert B...,.— ... 
ClmentCBR— 

Cockarill - 

EBES.,— 

Electrobfll 

Fabrique Nat,,.,.. 

G.B.inno— 

GBL (BruxL)-..— . 

Gevsert— 

Hobftken 

intercom 

Kredietpank..— . 
Pan Hidgo 


Kaufhcf.,— — 

KHD— 

Kiaeckner „ 

Krupp- — 

Linde — . 

Lufthansa — 

MAN 

Manneemann— 
Merced bb Hta_, 

'MetaUgetiwil 

Muenoh Ruck— 
Preuaeag,— .. 
Rhein WestEled 

Rosenthal..-.-. 

Sc ho ring 

Siomon 

Thyesen— 

Varta. 

Veba 

Verein-Wtst 

Volkswagen.—. 


.' 158 : 
176 1 

J 62. 7i 
.i - 60 , 

. 287 
. 70 

. 169 ; 

, 147.S 
. 261 
. 215 
. 688.5 
. 205.8 
t 171.1 
. 888 
. 876 
. 883.5 . 
. 88.7 

. 178 
. 138.6 
. 380 
. 144,5 


SWITZERLAND 

. • • i + or 

April 20 . Price ; — 

• Fro. j 

AIobuIsbo- ... J 495, — S 

Brown Boverl— .1 1,060 —20 

Clba-aeigy 1295' +5 

do (Part Certs)- 980: +5 

Credit Suisse ' 1.740 -10 

Elektrowatt. ; 2,300' +5 

Richer (Geo)—.; 455: 

Ho(f*RoahePtCts 61,250- -4-250 
Hoff -Roche 1/10] 6. 10&' 4 85 

Interfood J 6^00 +60 

Jelmoll 1,265: —10 

Landis ft Gyr 850i —10 

Nestle 3^20; —5 

Oer-Buhrlle ....— i.iaoi —HE 

Pirelli '23l| -3 

Saudaz (B) 4,125. —26 

Sandoz (Ft Cts) - 524, +3 

Schlndter (Ptcts) 270 +a' 

Bwismri. 786 +5 

Swiss Bank- 29T. —a 

Swiss Rein so e 6,000] +50 

Swiss Volkebk — 965 +10 

Union Bank- 8,950 — lie 

Winterthur - 2^35 +35 

Zurich Ins.,,—.... 13,150' + 60 


Ailnomoto 835 ■ *5 

Amada ; 555 . *13 

Asashi Glass. . .... 550 ' *8 

Bridgestone 429 ■ * 1 

Canon- : 697 + 54 

Citizen ! 262 -1 

Dai el ' 620 *5 

0K80> : 494 , , 

Dai Nippon Ptg • 641 -4 

Oaiwa House .. . i 407 . - 1 
Da/wa Seiko... 384 + 9 

Ebara- 43S • -2 

Elsai j 770 : +5 

Fuji Bank.....— ...i 5QQ ' 

Fuji Film ’1.310 ! +70 

Fujisawa. -1.220 , *B0 

Fujitsu Fanue. .-..4, ISO : 

Green Cross. 11.830 ! —20 

Hasegewa...- : 555 ; +5 

Holwa R1 East 585 I -12 

Hitachi— 595 + 35 

Hitachi Kokl 450 ' +8 

Honda - ! ’ 710 , *54 

Houaefood — 1/J10 : 

Hoys 690 i +14 

Itch (Cl J "2B5 i +B 


SOUTH AFRICA 

April 20 Pi 


Abercom 

AE ft Cl 

Anglo Am 

Anglo Am Gold. 
Anglo Am Prop , 

Barlow Rand 

Burials 

CHA Invest- 

Currie Finance. 

□e Beers 

Driefontein— 

FS Geduld 

Gold Fields SA .. 
Highveld Steel.. 

Huletta.. 

Kloot 

Ned bank 

OK Bazaars. 

Protea Hldgs . . 

Rombrant 

Rennies—. 

Rust Plat 

Sage Hldgs 

GA Brews 

Tiger Oats 

Umscc 


Financial Rand t'SSO.775 
(Discount or 18$%) 
BRAZIL 

I 

April 80 I Price . + or 
Cruz . — 


Ito-Yokado . 
JACCS 

870 

J 440 

+2 

JAL 

- - 2,360 

+ 10 


( 566 

• 358 

-18 

Kao Soap 

488 

+ 3 


Aoealta ; M | 

Banco Bratil ' H.B5 1 

Belso Min 4.00 

Lojas Amer.— ,..i 6.87 

Petrobrae PP - 9.60 

Souza Crus 8.35 

UnipPE 12,00 

Vale Rid Dace 13.50 


1.60: 

11.B5 —0.10 
4.00 +O.KJ 
6.87 — 0.)4 
9.60 


Kashlyama 743 ; —3 

ICkkonun j 377 ; -8 

Wrtn : ( 444 : +16 

Kokuyo 909 i +14 

Komatsu, | 448 ] +10 

Komatsu Tift- 588 ; , 

Konishrolku j. 578 ] +36 ‘ 

NOTES— Prices co thla page are" a* quoted « Am 
mdw.dwl exchanges and on tost traded - 
jmweitood. xdBc dhridend. sc Ex aerip Isaoe. xrExr^fc 


Turnover: Cr 1.927.2m 
Volume: 347.6m. 
Source; Rio de Janeiro 5E. 


S „ - 

•5 •' v: 





-Ur 






















35 





-I 



Min, 


0-1. 


'n 






I '"‘ I, 


- i 








it,. 

■ i‘i . ^ 
"..IK. 

'"•'u L»' 




Financial Times Wednesday April 21 1982 

Coniiwleii and Markets ‘ LONDON STOCK EXCHANGE 


Gilts and equities firm again but close below best 
awaiting developments on Falkland Islands dispute 


Account Dealing Dates 
Option 

•First Declare- Last Account 
Dealings Hons Dealings Day 
Mar 29 Apr 15- Apr 16 Apr 26 
Apr 19 Apr 28 Apr 29 May 10 
Apr 30 May 13 May 14 May 24 

Naw tfmft ” dealings may take 
jAtt Tram &3Q am two business days 
earlier. 

: . The overnight signs of zww 
found confidence in London stock 
■markets tended to fade as yester- 
days trading session progressed. 
Leading equities closed below 
.the best after extending Monday's 
date advance by a useful mar gin 
and Gilt-edged securities also 
jailed to bold best levels. 

An air of uncertainty prevailed 
at the opening following the cool 
reception given -to Argentina’s 
J atest peace plan,. but conditions 
isoon brightened as occasional 
buyers began to show selective 
interest in leading shares. 

-In current thin markets, 
demand met with "a ready 
^response and a minor improve- 
ment in the FT 30-share index at 
.10 am was extended over the next 
three hours to 6.9. This proved 
■to be the best of the day, the 
•index drifting back to dose 45 
Up on balance at 562.6 as the 
market became apprehensive 
awaiting yesterday’s Cabinet 
■response to the Argentine peace 
formula. Glaxo, up IS at 621 p — 
pn a revival of demand which 
found the market short of stock, 
‘featured the day's dealings in the 
leaders. 

Overall, trading conditions 
remained quiet but selective 


support was also forthcoming for 
secondary equities, while com- 
pany trading statements created 
more interest than of late. 

Gilt-edged securities opened 
higher following Monday's late 
upsurge and, encouraged further 
by the firmer trend In sterling 
against the dollar- and some 
easing - in money market rates, 
long-dated stocks improved by 
around 1 more with buyers 
showing fresh interest: Profit- 
taking In yesterday's late deal- 
ings left prices a fraction below 
the best, but the Government 
Securities index rose 059 for a 
two-day gain of 055 to 67.45. 

Discount Houses good 

Discount Houses advanced 
-strongly in sympathy with firm 
gilts. Union jumped 20 to 430 p 
and Cater Allen 15 to 325p, while 
Alexanders, 21Sp, and Gerrard 
and National, 25Sp, gained 13 
. apiece. Give put on 5 to 30p and 
Smith. St Aubyn 3 to 40p. The 
major clearing banks extended 
Monday’s late rally but closed 
well below the day's best. 
Following the A CUM, NatWest 
touched 422p before finishing a 
net 8 up at 418p, while Midland 
put on 6 to 318p, after 322?. A 
dull market of late on disappoint- 
ing annual figures, Bank of Scot- 
land picked up 10 to 405p. 
Renewed speculative support on 
continuing bid hopes helped 
Grfndlays to harden 2 more at 
180p, after lS2p. 

Insurances contributed to the 
firm trend. Hambro Life were 
active and 9 higher at 294p, 



FINANCIAL TIMES STOCK INDICES 


■ ■ 


April ! April 
20 | 10 

V 

A S ril 

April 

14 

A f3 rt ' 

A- 

year 

ago 

-i 

* 


67.45 67.06 

60.5Oj 

■ 

66.59i 

66^0 

66.70 

69.44 

.1 


67.75- 1 67.40 

67^6 

550.7 

67.66 

67.63 

67.35 

71.15 


Industrial Ord 

66Z.Bj 668.1 

644.81 

S54.4 

651.6 

566.1 

Gold Mines 

247.81 Z55.5, 

265.5 

266.9 

267.2 

266.6 

SSB.B 



6.56 5JS0 

5.69| 

5.751 

5-64- 

6.67 

6.81 


11.12 1ZJ21 

11J8 

11.48 

lljd 

11.35 

11.34 


P(E Ratio InoO (*) — 

HJ2»j 11.19 

11.02 

10.90 

11-09 

11.03 

11.04 


Total baroR'n* 

15,470 13,9791 

16,504, 

16,615! 14^)05 

15,550 

22,920 

- 

Equity turnover £m. 

77.30| 

113.90 

119.17! 

84.02 

93.03 

134^5 


Equity bargftln*— ■- ■ 

I- 8 * 393, 

12/m7i ll/llffl 9^21 

10,456! 

18^96 


10 am 558.6. 11 «n 582.8. Noon 564.4. 1 pm G65.0. 

2 pm 505.0. 3 pm 563.6. . . __ . 

Bas-a ICO Govt. Sooa. 16/10/25. R»d fm. 1328. Industrial Ord. 
1/7,35. Gold Mine* 12/3/50. SE Activity 1974. 

Latest Index 01-248 8026. 

•NB=10^B. 


HIGHS AND LOWS 


S.E. ACTIVITY 




1982 

Since CompUat'n 



High 

Low 

High 

Low 


Govt. Secs.- 

69J5 

61.89 

127.4 

49.18 I 




(6/1) 

(6/1/56) , X5H/7B) J 


Fixed Int.™ 

69.74 

(214) 

62.79 

am 

150/4 1 50.55 
(28/11/47) (8/1/75) 


Ind.Ord. 

579.8 

618.1 

597.3 

49JI 1 


(28/1) 

(S/1) 

(3B/4IB1) (SBW40) 


GoldMIne*^ 

302.0 

(6/1) 

209.2 

(6/5) 

568.9 : 43/5 { 
(0/9/80/ pB/ID/71)^ 


April i April 


19 


■I- Dally 


Bargai 
Equities 
'Bargains... 

Value 

Lday Avrge. 
iGirt-Edged 
Bargains... 

Equities I 

Bargains... 


aim... 130.7i 


60.9 

156.2 


146.6 


69.0. 

197.0. 


149.0 


BOA 

230.2 


153.3 


71.6 

303.9 


while Stewart Wrightson rose 8 
to 234p as did Willis Faber, 465p. 
Royals featured Composites with 
an improvement of 10 to 340p. 

The Building sector featured 
Tilbury Group, which jumped 

40 to 380p on the return to 
profitability, increased dividend 
and capital reorganisation pro- 
posals which will result in an 
equivalent share price of about 
63p. The more optimistic out- 
look for housebuilders encour- 
aged revived support for Barrett 
Developments, which gained 5 to 
271p, and George Wimpey, up 
3 at 107p. Among Timber issues, 
Magnet and Southerns put on 6 
to 160p and J. Carr (Doncaster) 
3 to 79p. Other firm spots 
included UBM, 4 better at 54p, 
and Knbero id, 5 up at 141p. 

ICI touched 324p before drift- 
ing off to dose only 2 dearer on 
balance at 322p. Demand in front 
of tomorrow’s preliminary results 
left Laporte 3 up at 144p, while 
Coalite, a nervous market of late 
on the company's interests In the 
Falkland Islands, rallied 6 to 
116p. Coates Brothers A 
■improved 4 to 73p and Hickson 
and Welch 7 to 230p. 

Menzies advance 

Proceedings in Stores were 
featured by newsagents John 
Menzies which advanced 17 to 
253p In active trading following 
the increased dividend and 23 
per cent jump in preliminary 
earnings. Lonsdale Universal, 
for which Menzies launched a 
dawn raid and subsequent offer 
of 60p per share on Monday, 
added a couple of pence more 
to 68p; Mr Robert Maxwell's 
British Printing and Commtutica- 
tion, which acquired a 6.5 per 
cent- stake in Lonsdale on 
Monday, firmed 3 to 41p. 

Elsewhere, Harris Queensway 
attracted strong support await- 
ing today's preli m i n ary results 
and closed 10 higher at 152p. 
Foster Brothers Clothing con- 
tinued to draw strength from the 
recent' sale of subsidiaries and 
sale-and-leaseback deal and added 
5 more to 60p, while talk of a 
broker's circular lifted Dixons 
Photographic 8 to 173p. Revived 
speculative demand aided. Mr 
Asil Nadir's trio; CorneU Dresses 


rose 6 to 173p, Polly Peck 7 to 
332p and Wearwell 2 to 57p. 

The leaders held up well, senti- 
ment helped by the encouraging 
retail sales figures Gussies A rose 
5 to 488p, while Marks and 
Spencer firmed a couple of 
pence to 149p. 

The group's £250m South 
African turbine generator con- 
tract induced fresh support fjr 
GEC which improved to S2bp 
before closing 6 up for a two-day 
gain of IS at 823p. Other Elec- 
trical leaders, with the exception 
of Plessey, down a few pence at 
370p, made progress hi moderate 
trading. Still reflecting reports 
that the company's advanced 
electronic exchange System X 
had attracted its first export 
order. Standard Telephones and 
Cables added 11 more to 533p, 
while investment buying lifted 
Cable and Wireless 7 to 246p 
Improvements of between 10 and 
15 were seen in MK, 300 p, AB 
Electronics, 136p, and Rode Inter- 
national, 265p, while renewed 
demand in a thin market 
prompted a further rise of 7 to 
225p in Lee Refrigeration. 

Baden became a notable firm 
feature in Engineerings, rising 
12 to 207p on buying in anticipa- 
tion of today’s preliminary 
results. Support was also forth- 
coming for Matthew Hall, 205p, 
and for Davy Corporation, 142p, 
up 8 and 7 respectively, while 
Glynwed put on 4} to 118p. 
Babcock International improved 
4 to Ulp and Green’s Econom- 
iser, on the results, hardened 2 
to- 14Bp. Speedwell Gear Case put 
on 3 for a two-day jumn of 9 to 
23p following the 20p cash 
counter-offer from LathfeJl 
Securities. Awaiting today’s 
annual figures. Hawker hardened 
2 to 302p. Tubes put on 4 to 140p 
and GKN 2 to 160p. Vickers were 
quoted at 158p ex Hie rights 
issue, with the new nil-paid 
shares opening at 15p premium 
and dosing at 17p pr e miu m . 

Food Retailers made a parti- 
cularly good showing, J. Salis- 
bury rising 20 to 590p and Kwik 
Save 6 to 248p; both companies’ 
annual results are due early 
next mouth. Associated Dairies 
.also added 6, to l30p. while 
Bejam gained 5 to 119p- William 


Low dipped to 196p before 
closing a net 2 cheaper at 19Sp 
on the one-for-tbree rights issue 
proposal at 145p that accom- 
panied the interim results. 
Elsewhere, renewed support 
lifted Associated British Foods 

8 to 134p and Northern Foods 4 
to 164p. Rowntree Mackintosh 
toadied 172p before settling only 
a couple of pence 1 dearer on 
balance at 16Sp following the 
chairman’s review. Somportex, a 
thin market, attracted support 
and put on 20 to lOOp. 

Glaxo feature 

The miscellaneous industrial 
leaders extended Monday's late 
rally pending the next moves in 
the Falkland Islands crisis. 
Glaxo were the pick of the 
bunch. Jumping IS to a J982 
peak of 62lp on buying in a 
market none-too-well supplied 
with stock; sentiment here was 
still buoyed by the recent good 
interim results and the profit 
potential of the group's Zantac 
drug. Pilkington moved up 13 to 
253p. and Metal Box 156p. and 
Beckitt and Column, 2S4p. gained 
10 apiece. Elsewhere, Dentsply 

9 per cent Convertible was 
hoisted 21} points to £86 on the 
proposed early repayment of the 
stock at £90 per cent. 

Johnson Matthey gained 9 to 
257p in response to Press com- 
ment and BET added 3 at 176p 
for a similar reason. Bodyeote 
advanced 4 to 5Sp following the 
results, while revived bid hopes 
lifted Chubb 7 to 121p. Sothebys 
rallied 10 more to 310p and 
Hep worth Ceramic 5 to 11 8p. 
Standing S firmer immediately 
ahead of the results. Smiths In- 
dustries reacted on them and the 
accompanying cautious state- 
ment to finish 7 down on balance 
at 338p. Channel Tunnel, at 128p, 
lost 20 of the previous day's 
jump of 53. 

Motor Distributors took up a 
firmer stance. Western Motor, in 
a thin market, rose 5 to 60p in 
front of today’s full-year results, 
while Harold Perry firmed a 
couple of pence to 103p follow- 
ing the preliminary figures. 

Printers Websters jumped 4} 
to a 1982 peak of 42Jp following 
the Increased preliminary profits 
and dividend. BunzI Pulp added 
4 to 174p. while support was also 
forthcoming for Cradley Print- 
ing, 2 dearer at 19p. 

Oils edge higher 

Properties were indecisive. 
Land Securities hardened a 
penny to 285p, but MEPC 
softened that much to 202p. 
Capital and -Counties, up 6 on 
Monday on renewed speculative 
interest added a penny more to 
131p. while Slough Estates and 
Stack Conversion improved 3 
apiece t-o I29p and 315p res- 
pectively; Hard anger Property, 
dealt in the Unlisted Securities 
Market met revived support and 
put on 7 to a 1982-peak of I25p, 
but Control Securities shed 1} 
to SSip - on lack of interest 
Cussfns Property hardened a 
penny to 91p awaiting today’s 
preliminary results. 

Leading Oils took the pre- 
vious day’s late improvement a 
stage further. Shell adding 4 for 
a two-dav gain of 12 to 390p. 
After Monday’s rise of 14, 


’British Petroleum touched 302p 
before drifting off to close un- 
changed at 300p. Elsewhere, 
Ultramar put on 14 to 405p in 
response to the chairman’s 
annual review, while Charter- 
house gained 4 to 77p following 
an appraisal of the company's 
oil and gas interests. Renewed 
demand In a thin market lifted 
RCA International 8 to 95p, after 
97p, while Berkeley Exploration 

put on 10 to 260p and Oil and 
Gas Production 5 to 41p. 
Hamilton eased to S9p before 

closing a penny cheaper on 
balance at 90p following the pre- 
liminary results. Charterhouse 
Petroleum’s decision not to pro- 
ceed with its offer for CCP 

North Sea. thus leaving the way 
clear for Tricentrors £15.6m bid 
for the company, left CCP 7 up 
at 202p. 

General and Commercial In- 
vestment Trust the subject of 
agreed offer from Refaqe Assur- 
ance. advanced 13 to 24Sp follow- 
ing a rival offer worth £15.3m 
from Britannia Arrow, a couple 
of pence' off at 40-Jp. Beruge. 
which staled that it will not in- 
crease its offer, rose 10 to 22Sp. 
Elsewhere in Financials, money 
brokers attracted renewed sup- 
port and Mercantile House closed 
15 to the good at 390p. Exco. 
190p. Mills and Allen, 49Sp. and 
R. P. Martin. 300p. all added 5. 
Welbeck firmed 3 to 36p and 
Lamont gained the turn to 17p 
following the respective pre- 
liminary results. 

Golds down again 

Heavy losses in the bullion 
price and gold shares in over- 
night American markets, which 
reflected hopes of a diplomatic 
settlement of the Falkland 
Islands crisis, led t» further falls 
in the bullion price and gold 
shares in London yesterday. 

The sharemarket opened on a 
weak note ai»d drifted lower in 
subdued trading as the metal 
price fell a further S5J25 to 
S3 42.75 an ounce. The Gold 
Mines index dropped 7.7 more 
to 247.S, a fall of 19.4 over the 
past four trading days. 

Heavyweights fell by up to 
as in Buffet, £14?, while losses 
of 3 were common to Band- 
fontein. £24}, and Western 
Deep, £13}. Medium and lower- 
prictid issues showed Durban 
Deep 32 lower at 734p and East 
Band Proprietary 21 off at 433p 

London ' Financials moved 
ahead, boosted by the gains in 
UK equities. Rio Tinio-Zinc con- 
tinued to attract sizable invest- 
ment support and advanced 6 
for a three-day rise of 19 to 
438p. 

Demand for Traded Options 
improved substantially and 2.110 
deals were arranged. Calls 
totalled 1,846 with a considerable 
amount of money directed 
towards the soon-to-expire April 
series. British Petroleum 
attracted 309 calls, with the 
April 2S0s and 300s accounting 
for 111 and 155 trades respec- 
tively. Imperial remained to the 
fore with 334 calls transacted. 
145 done in the May 90s and 140 
in the August 100s. ICI and 
Courtaulds recorded 119 and 117 
trades respectively. Puts were 
relatively subdued with only 264 
deals struck. 


RECENT ISSUES 


EQUITIES 


Issue 

price 

P 


u 

» = «' 
® 3S| 


1BB2 


'2T>;22tf 

'is j 50 


High i Lowj 


Stock 


• ! 1*1 

:S+ 0l "soS!S 


slSsL-a 


140 

242 

15 

■102 


{350 
’99 
! i 
1120 
:i3o 


236 

cc 


F.P.;14<5 
F.P.ZOfS 
FJ>. 15.4 

:f.p. . - 
If.p. - 
— 

F.P.14/3 
F.P. 5/3 
F.P.- - 
■F.P.' 7/5 
F.P. 16,4 
F.P.' — 
F.P.i — 
F.P.-15-5 
F.P. - 


;l4d 
212 
1 28 
135 
: 25 
I 39 
^50 
93 
375 
!i34 
!170 

: so 

: 42 
■141 
90 


140 

.186 

i 19 

1B= 

i 21 

27 
<250 
. 89 
■267 
123 
:i3? 

30 
, 39 
,135 
; 70 


AIM Group lOp. 146 

Amcrsham .. 200 

ICambrian A Gcn.7op: SB 

Dew i George)- 124 

Fleet Holdings fop... 22 
Ktreenfrlar Warrants! 39 

I* lo Technology ,1252 

i*lmm. Bus. Sys.lDp| 89 
■Webscns Drilling,... 26B 

!4>Lelaure lnds. u ;123 

-J-Oceontcs lOp ......... 160 

Osprey Assets | 30 

P. H. Industrials....-.) 40 

{Standard Secs... ;135 

Zambia Con aCprlOK! 70 


"j 'bd6.75 2.9! 8.7; 18.1 

j + 7 ,b 3J 12.412.5118.1 

| j cToj e.&| m 

j 2.J Ml 6.7 

[+1 MJO | 2,B< 5^| 8.6 

'bd 1.514.71 1.3. IM 

'FI .4 !- [6.7; - 

b3.5 1JB W.6, 65 

| -„.. b2.e ] u; 3 .o;«ls 


FIXED INTEREST STOCKS 


lute .so 
price ! on 
i: 1 En 
< c. 


1982 


S5 


stock 


p|+_« 


■4 'High; LOW; 


1 Sr - 

.i on. 


100 F.P. 
c ioo no 

{99.333 *25 
" F.P. 
100 F.p, 
*99 .F.P. 

rioa fj>. 

•100 F.p. 
:100 F.p. 
II 107 Nil 
■’ F.P. 
8.53 X20 


14/4116 1 1 10 Boddl ngtans Brew 9 >t2 Cnv. Ln. 20C0JI5 

: 24/6 101?! 101a Bristol Water 9? Pref. 

I 14/7| 25 2isj Cred. Fonder do France Mffc Lon.SMf 

- 136 136 IFire: Nat 12ipc Conv. Una. Ln. 19B7„ 

I 22'3‘IOS i 97 iHuntlng Pet 10^ Gnv. Ln. 1997 

I 23(4 ioi*j 101 la Leo Valley 91?^ Red. Prf. 1989. 

— lOQiai 99 ^d Nationwide Bdg. Soc. 14i4<sU4iS/B3i. 

' - 100 »n DO. 1414-S i 4/4,-831™ 

- IQOUllOO.i, DO. 14^4%. 126 (4/83 1 

29.4- 5pm lpom.Qucona Moat 104" Cnv.'89-Bl 

16.-4 lOZAp loop 'Ropnara uw Cum. Prf - 

i 20,5 25<= 19-i Trans- Canad Pipeline* 16i^ Notes 2007 


,111 | 

101j ...... 

tlOOijI — , 

. 99 s * ' 

: 99tb +ia 

,ioou;+* 

i iC 

; 22U! 

I 




“RIGHTS” 

OFFERS 


Issue 

price 

P 

— a 

If. 

<e . 

Latest i 

Renunc. 1952 

date ! 

• a ' High . Low ! 

Stock 

|It- 


10 Nil 27.4 28-5 2i?pm. l>4Dm Anebacher iH.l 6p + . 

12S ‘ F.P. 21 A 28(5 146 135 l Beazer tC. H.t lOp 

AM ' Nil - — . 6i?pml 3i<om-Bond Corp 

70 F.P. 16.3 19>4 io» < 73 ❖Clyde Petroleum 

30 F.P. 29 3 10.5 60 ' 50 'First Castle 1 Op 

20 ! Nil ,30.4 28(5 19pir»: 14pm'Fi5nor lA.) 

5 Nil — — Jnproi -upmGrovobell (5pi 

160 F.P. 22,3 29/4' 168 - 164 IHuntinq Pet. Service*. ... 

120 Nil l - - . 29pm- 24pm Ulley (F.J.C.I ...... 

A^CJ5 Nil 22.3 29.4; 11pm! 12pm-M.I.M 

IB Nil i — - ■ 4pm 4pm'North Kalguri 

6 F.P. 19 4 21(5' 71. bi^ Platignum 5p 

27 Nil 29,4 27 5 14pm 1 1pm Queens Moat 

93 F.P. 16.4 4 6. 102 - 99 -Riley Leisure 

74 F.P.I 8 4 6.5- 120 1 08 [St. Ceorge * Grp. lOp. ... 

110 F.P. 25,3 23.4! 167 134 Socur.ty Centres 

11 F.P. 1 6.4 27(4. 16 : 14 -Shaw 4> Marvin lOp 

10 F.P; 24/3 23, -4- 13>;: IQi-'Sturla lOp 

133 . Nil ; — —| 17pmi lfipmlVickers (Cli 


3>lpm! + >4 
139 >« 

6pm; — 
aa ,+i 
54 1-1-1 
19pm, +3 
lapm: 

102 i 
B9pm|+S 
5lpm,+1 
4pm ■ — • 
7 + >« 

lpm' 

102 1 + 5 
118 

144 +8 


14 


1He!+ 1 
17 pm. ...» 


ReeuncMtiaa date usually last day tar duUog Ins of stamp duty. 6 n ouns 
based on prospectus estimate, d Dividend nut peld or payable da pan d 
esprod: cover based oa dividend on fuB capital, g Aaaumad dMdead end yield, 
f indicated dividend-, cover relates to prsvleua divldsnd. P/E ratio based on latest 
mnuii earning*, u Forecast dlvidond: cover based an previous year's ea rnings. 
F Dividend and yield based on prospectus or othor official estimates for 1S82. 
-Q Gross. T Figures assumed. ^ Figures or report awaited, t Cover allows for 
conversion of shares not now ranking for dividend or ranking only lor restricted 
dnrcdends- § Placing price, p Pence unless otherwise Indicated. 7 Issued by 
mndor. y Oflonrd to hoi decs of ordinary shares as e "rights." ** Issued by way Of 
catMoliKtian 5§ Rabureducad. 71 laaued in eonnectioa with raorgenleatloa. 
mviger or tato-ovet innoducum. □ lasaetf to former preference takftus. 
B Allotment letters (or lully-potd). • Provisional or partly-paid allotment lottsre. 
* W>th warrants. tt Dealings under apodal Rule. ■£ Unlisted Securities 
Ua-kct. ♦* London Listing. t Effective a sue pr>ca after scrip, t Formerly 
dash ta under Rote 163(2) (a), ti Unit eoteDdstog 6ee eadtesiy end duee 

flap Ithjrgy 


ACTIVE STOCKS 

Abova overage activity was noted in the following slocks yesterday 


Stock 


Closing 

pnea 

pence 

□ay's 

Change 

Stock 

Closing 

price 

pence 

tisy'a 

change 

Charier 

Cons 

210 

+ 5 

Harris Queansway 

... 152 

+ 10 

Chubb 


12 T 

■+ 7 

Menzies (John) 

... 253 

+17 

GEC 

Glaxo 


823 

+ B 

RTZ 

... 438 

+ 6 


621 

+ 18 

Rothmans Inti 

... 80*1 

+ 2h 



207 

+ 12 

Smiths Inds 

... 338 

- 7 - 

Uanbro 

We 

294 

+ 8 

Ultramar 

... 405 

.+13 


MONDAY’S ACTIVE STOCKS 

Based on bargains recorded In S.E. Olficiol List 


Stock 

Monday's 

No. of closing 
prico price Day's 
changes pence change 

Stock 

Monday's 

No. of closing 
price price Day's 
changes pence change 

BP . ... 


13 

300 

+ 14 

Plessey 

.. 9 

373 

+ 6 

Lonsdale 


12 

06 

+ 24 

Rank Org .... 

9 

177 

+ 1 

GEC .. 


10 

817 

+ 12 

RTZ 

9 

432 

+ a 

Burm ah 

Oil ... 

s 

140 

+ 5 

Shall Trans 

9 

366 

+ 8 

Fisons 


9 

307 

+12 

GUS A 

8 

483 

+ 5 

Hanson 

Trust 

9 

141 

- 5 

• Thorn EMI . 

.. 8 

427 

— 

ICI 


9 

320 

+ 8 

Unilever 

8 

588xd 

+ 5 


RISES AND FALLS YESTERDAY 

Rises Falla Same Rise* Falla Same 

Brlitlsh Funds ...... 75 7 11 Oils 32 6 89 

rvw PtantefWti* 4 — ID 

C °^ I ^H, and « 1 32 Mi "« S 13 61 66 

Foreign Bends ... 43 1 M Offwre 38 58 81 

Industrials 488 74 779 

Financial ft Props. 209 23 277 Totals 902 228 1,334 


CONTRACTS 

£7.6m work for 
Haigh & Ringrose 


The Ridhardsons W«t 
Group subsidiary HAIGH AND 
RINGROSE has been awarded 
contracts worth £7.Bm. As sub- 
contractors so Foster Wheeier 
Energy it will carry out the 
installation of all i^trmnenta- 
tion and electrics on Roche Pro- 
ducts' new vitamin -C plant at 
Dairy and will do similar work as 
sub-contractors to John Brown on 
the. new Flurbiprofen plant at 
Qramlington for. the Boots Com- 
pany. 

The company bag also been 
awarded the energy conservation 
instrumentation contract Dy 
Humphrey and Glasgow at EP 
Grangemouth, the instrumenta- 
tion term contract by Shell 
Chemicals UK at Carrington, and 
.tiie instrumentation contract by 
r. nmm ng Nederland BV for exten- 
sions to Lindsey oil refinery. 

.. British Telecom orders worth 
more than £2.75m have been 
won by THORN EMI DATATECH 
To manufacture, supplies of 
modems for BTs expanding Datel 
Services. 

The company is producing 
2400 bps devices for the Datel 
2412 service. These are the Type 
31 modem and the Type 32 
modem for fitting inside a tele- 
phone unit. 

LOEWY ROBERTSON ENGIN- 


EERING COMPANY has won a 
turnkey contract worth £lfim 
from British Lead Mills for a 
lead Sheet rolling mHl and 
associated, equipment Fully 
automatic gauge control will be 
fitted, together with com- 
puterised mill pass scheduling. 

SIGMUND PULSOMETER 
PROJECTS, a member of the 
SPP Group, is to supply and 
Install pumps and. associated 
equipment for a major improve- 
ment programme for the Esholt 
Sewage Treatment Works, Brad- 
ford, being undertaken by the 
Yorkshire Water Authority 
(Western Division). 

Equipment is worth £250,000 
and Includes six large vertically 
mounted split-case pumps, close- 
coupled to fixed speed electric 
motors, together with control 
gear, pipework and valves. The 
pumps wfcH be used for recircula- 
tion duties to supplement the 
normal daily flow variations to 
the Esholt Works so as to main- 
tain a flow rate of approximately 
-twice dry weather flow on to the 
filter beds for treament- 

STANDARD TELEPHONES 
AND CABLES' electronics 
division at Newport, Gwent, has 
won a £200,000 export order from 
Rockwell International, Dallas, 
U.S., for lincompex terminal 
equipment . 


APPOINTMENTS 


Managing director 
at RHP Bearings 


Mr Brian Crosby is to join 
RHP BEARINGS as managing 
director. He will also be 
appointed to the board of the 
parent company RHP Group- Mr 
Crosby was managing director of 
GEC Fusegear, Liverpool. 

★ 

Mr Peter N. Davies will retire 
from the board of ALLIED 
BAKERIES, of wfcicft. be is 
chairman and chief executive, at 
the end of September. He will 
also be resigning from the board 
of Associated British Foods. Mr 
Davies will be replaced by Mr 
Geoffrey R. John, who joins 
Associated British Foods from 
Dalgety Sptilers early in July. 
Mr John will take over the posi- 
tions vacated by Mr Davies and 
will join the board of Associated 
British Foods in October. 

* 

Following the acquisition of 
Mann in Trust Bank; MANNIN 
INTERNATIONAL has made the 
following appointments: Mr 
W. A. Gil bey has been appointed 
chairman; Mr. R. N. .Hurst, 
managing director; Mr G. M. Reid 
and Dir J. Watson remain on 4he 
board as non-executive directors: 
and Mr R. H. Mackenzie joins the 
board as finance director and 
general manager. Mr R. 
Buchanan, joint managing 




Yfe are pleased to announce 
the formation of 


AjGJSECKER commodities limited 

Martin T. Gddart 

jVfanagmgDnrato 

Ax nfpink* rfA.CJetfalrderwfitMsl limited 

BnroHoase,TheVM 

• Tripph rnigAdmRu 01-4S&-9692 

Memis 01-488-2711 

Softs 01-488-9911 

‘Btoc- . 


ApriOSSZ 


director of Mannin International, 
has resigned from the board and 
from the boards of Mannin Trust 
Rank and all Its associated or 
subsidiary companies- Sir John 
Cuninghame- has resigned from 
the board of Mapirin Inter- 
national 

.★ 

Mr A. B. Sa nders , marketing 
director of SMITH KLINE & 
FRENCH LABORATORIES, has 
been elected to the board. 

* 

Hr J- H. Gura becom es or esi- 
dent of the CHARTERED 
INSTITUTION OF BUILDING 
SERVICES on April 22. Mr Gura 
is senior partner of consulting 
engineers Hie Oscar Faber 
Partnership. 

* 

Hr Malcolm Brown has been 
appointed media director of 
CHARLES BARKER SCOT- 
LAND. part of the Charles 
Barker group. Formerly media 
director of R. & W. Advertising, 
the agency which recently 
merged with CBS, Mr Brown 
will be based in Glasgow. 

* 

BOWRING UK has acquired a 
100 per «nt interest in Miller 
Smith (Insurance Brokers), 
based m Cardiff- Mr C. N. Aylen, 
Hr L w. Hughes and Mr B. J. 
Speed have joined the board of 
Miller Smith (Insurance 
Brokers). 

- The intention is to merge 
Mili ar Smith ' (Insurance 
Brokers), with Bowing's exist- 
ing company in Cardiff, C. T. 
Bowring & Hughes (Cardiff). 
Mr S* Miller and Mr B. J. Speed 
wifi be chairman end chief 
executive respectively of the 
merged company and Mr B. John, 
Hr M- <*. Jones and Mr A. K. 
Price wifi be appointed 
directors. 

Mr S. Marks intends to Teiin- 
miish the chairmanship of 
B AMBERS STORES at the 
annual meeting. Mr Harks will 
then become life president 
Mr L. Vernon will be appointed 
chairman in addition To being 
man agin g director. Mr _ ■ M. 
Kleiner has been appointed 
deputy chairman in addition to 
being deputy managing director. 
Mr H. Grant has retired as a 
director bat will be continuing as 
company secretary. Mr P- H. 
Vernon has been appointed com- 
mercial director. Mr. D. 
Wottrelcb. a ■ nonexecutive 
director, has been appointed 
financial director. 


NEW HIGHS AND 
LOWS FOR 1982 

The (allowing quotations In the Share. 
InlornvJtlon Service yesterday attained new 
Highs and Lows lor 19BZ. 

NEW HIGHS (42) 

BRITISH FUNDS (2) 

Fndg. Stpe ’B2-B4 Treat- 3pc 1986 
CORPORATION LOANS (1) . 
Glasgow Stipe ’80-82 

COMMONWEALTH LOANS (23 
Ausb SPC -31-83 S. Rhod. 2'1PC N-A*. 

FOREIGN BONDS (1) 

Ireland 7ijpc ‘81-83 

AMERICANS (« „ 

Abbott Labs. City lav. C Pf. 

Chesebrough Woolwortha 

BANKS (1) 

Clive Discount 

BUILDING ■ (1> 

Tilbury Group 

CHEMICALS (Z) 

Coates Bros. Do. A Non-Vtg. 

STORES (2) 

Harris Queenswiy Menzies O J 

ELECTRICALS (1) 

Std. Tel. & Cabins 

INDUSTRIALS tBi 
Dentsply 9 pc ’91 -96 Lonsdale UnW. 

Evode Prestige 

GR Hldgs. Vlnun 

Glaxo Willi (G.) 

INSURANCE (SI 
Stewart Wrigbcaon w I Ills Faber 

Travelers 

LEISURE (1> 

TVS Non-VtB- 

MOTORS (3) 

ERF Tate of Leeds 

Bra mall (C. D.) 

NEWSPAPERS (Z) 

Dally Mall A Websters Grp. 

Pearson Longman 

PROPERTY (II 

Hard anger Prop. 

TEXTILES (II 

Stirling Group 

.TRUSTS (21 

Gen. A Com. TR North American 

OIL AND GAS <21 

CCP North -Sea Oil ft Gas Produc. ■ 

NEW LOWS (211 
AMERICANS (2) 

Kaiser Alum. . Ren. NY Con. 

BUILDINGS (1) 

Inti. Timber 

CHEMICALS C1> 

Brent Cherns. 1 

STORES (II 

Owen Owen 

ENGINEERING (21 

Assoc. British WIHIttu ft James 

FOODS (II 

fMC 

INDUSTRIALS (S| 

Bcstobell Stonehlll 

Hawkins ft Upson Tovc 

Nell and Spencer 

PROPERTY (II 

Lynton 

TRUSTS (5) 

Border* Southern Britannia Arrow . 

Green bank Kellock 

Triplevest Inc 

MINES (?) 

Simmer ft Jack Pen < 510 Sen 


FT-ACTUARIES SHARE INDICES 

These Indices are the joint compOation of the Fmancai Times, the Institnte of Actuaries 
and the Faculty of Actiaries 


OPTIONS 

First Last Last For ' 

Deal-- Deal- Deelara- Settle- 

logs logs tioo ment 

April 5 April 26 July 15 July 26 
April 26 May 7 July 29 Aug 9 
May 10 Hay 21 Aug 12 Aug 23 
For rate indications see -end of 
Share Information Service 
Cali options were taken out 
in ICI* Town and City Proper- 
ties, Channel Tunnel, Trident 
TV A, Chloride, first National 
Finance, Howard Tenens, 
Raglan Property Trust. ESI, 

Westland, Lonrho, Pennine 
Commercial, Arrow Chemical, 
Tozer Kemsley and Mill bo urn, 
Courtaulds, Whittington Estates 
and. Smith SL Aubynl Puts were 
completed in GKN and Town 
and City Properties, white 
doubles were arranged in First 
National . Finance, Howard 
Tenens. Babcock International 
and Courtaulds. 



FIXED INTEREST 


PRK£ 

INDICES 


Span 

5-15 win 

0wrl5jw*. 

IfTHkCASUn. 


MStads. 


Prtm il na ft Lated 


Tbb 

April 

20 


109.% 

10M7 

33X53 


U7.95 

U9J3 


SMS. 


63.61 


Dsri 

ton 

% 


4821 

+flJ7 

40% 

4M1 

+455 


+QJ7 


44% 


Mon 

April 

M 


10973 

mm 

330.47 

12700 

10U2 


85 At 


6357 


xd 3dJ. 


Hf 3dJ. 
1982 
to date 


3.99 

453 

493 

142 

455 


354 


248 


AVERAGE GBOSS . 

Tues 

Mon 

fg 

REDEMPTION YIELDS 

April 

April 


20 

19 


BrttHi ficfereawt 

UHL. 5 

Conpoa • 15 

12J9 

1299 

PM 

K ■ 

2S years™.. 

12.98 


nn 

Maflua 5 years. 

Coapanj 15 years. 

1424 

MM 

1AM. 

3425 

mo - 

1323 

25 years. 

13 AS 

J3J7 

13J6 

Hltfi 5 yeas 

1417 

US 

- DM 

Caupons 15 yean...™ 

MX 

1A4Q 

2333 

■25 years. 

1314 

13.96 

1354 


S2.7B 

12JH 

1326 


IS- wars.., 
25 wan... 


1523 

1504 

15.0* 


11 15-50 


15.C 

15.17 

15J0 


1541 


MX 

14« 

1445 


1444 


* lhwrl "““S ^ ** 1 ’Sonant are putalisM In SateRtar Issuer Annalist of constlWeirts Is 

BWllafala from the PnUbhtrs, Tl» Firandat Dmcs, Bredeen House, Cannon Street, London, EC4P 48Y, price Ifip, ku post 2flp. 


4 . 


t 


•v* 




























CURRENCIES and MONEY 


£ & $ easier 


THE POUND SPOT AND FORWARD 


Sprung and the dollar 
D ? nervou froess about 
!E fi I ¥ ld5md Panels dispute and 
the downward trend in U.S. 
interest rates. 

The lira lost ground in the 
European Monetary System as « 
rwjilt of Italy's poimSl cSk£ 
SU 5 * french franc detained as 
french interest rates continued 
to ease. 

inJ T *^? NG ~ Trade-weighted 
index (Bank of England) 89.8 
afiainst 898 at noon, 90.0 in the 
morning, 898 at the previous 
cjose, and 878 six months ago. 
Three-month interbank per 
een * (Wi per cent six months 
ago). Annual Inflation rate 11 per 
cent <12 per cent previous 
month)— The pound closed fittle 
changed against the dollar, after 
a firmer trend for most 
of tile day, bygt lost ground to 
most other major, currencies. 
Sterling opened at S1.7700-L7710. 
ami touched a best level of 
fMi?9" 1-7740 ' before falling to 
S1.7640-L7650, and dosing at 
SL 7650- 1.7660, a fall of five points 
on the day. It fell to DM 42350 
from DM 42675 against the 
D-mark; to FFr 11.05 from 
FFr li.10 against the French 
franc; to SwFr 3.4425 from 
SwFr 3.4S in terras of the Swiss 
fr anc; a nd to Y429 from Y43450 
against the yen. 

DOLLAR — Trade-weighted 
index 115.2 against 1158 on 
Monday, and 1088 six months 
ago. Three-month Treasury bills 
12.435 per cent (1384 per cent 
six months ago). Annual infla- 
tion 7.7 per cent (8.4 per cent 
previous month) — The dollar 
fell to DM 2.3965 from DM 
2.4155; to FFr 6.2580 from FFr 
6.2850: to SwFr 1.9480 from 
SwFr 1.9675; and to Y242.S0 
from. Y245.80. 

D-MARK — EMS member 
(strongest). Trade-weighted in- 
dex 1238 against 123.1 on 
Monday, and 1241 six months 
ago. Three-month interbank 
9875 per cent (11875 per cent 
six montb s ago). Annua! infla- 
tion 58 per cent (58 per cent 
previous month! — The D-Mark 


April ao 


Day's 

spread 


Claw 


Or* month 


7. 

p.*. 


Three 

months 


P-a 


improved against most members 
of the EMS at the Frankfurt 
fixing. It was unchanged against 
the Irish punt and lost ground 
to only the Danish krone. Sterl- 
ing fell to DM 42400 from DM 
4.2550, but the Swiss franc rose 
to DM 1.2309 from DM 1827S. 
The Bundesbank did not inter- 
vene when the dollar fell to DM 
2.3942 from DM 2.4173, the first 
fixing below the DM 2.40 level 
since the beginning of the 
month. In the afternoon the 
U.S. currency continued to ease 
to around DM 2.3950. influenced 
by lower Eurodollar interest 
rates, and hopes of a cut in the 
U.S. Budget deficit 

FRENCH FRANC — EMS 
member (central ■ position). 
Trade weighted Index 78.7 
against 788 on Monday, and 
82.7 six months u£«i. Three- 
month interbank 161 Per cent 
(161 per cent six months ago). 
Annual inflation 13.9 per cent 
(unchanged from previous 
month) — The French franc 
weakened against all members 
of the EMS, except the Italian 
lira at the Paris fixing. The 
lira is at present suffering from 
Italy's political problems, while 
the franc's easier trend prob- 
ably reflected the downward 
movement of French interest 
rates. On the other hand the 
dollar fell to FFr 68370 from 
FFr 68S40, and sterling to 
FFr 11.0490 from FFr 11.0625. 

DUTCH GUILDER — EMS 
member (third strongest). 
Trade weighted Index ' 1148 
against 113.9 on Monday and 
1148 six months ago. Three- 
month interbank 8 per cent 
(12ft per eent six months ago). 
Annual inflation 68 per cent 
(unchanged from previous 
month) — The guilder remained 
very firm against its EMS 
partners at the Amsterdam fix- 
ing, showing no reaction to the 
lower trend la domestic interest 
rates. Among other major cur- 
rencies only the Swiss franc and 
Japanese yen were stronger. 
The dollar fell to FI 2.6560 from 
Fi 2.6820, and sterling to 
FI 47050 from FI 47220. 


U.S. 

Canada 

Nsthtnd. 

Bolgium 

Danmark 

Ireland 

W. Ger. 

Portugal 

Spam 

Italy 

Norway 

Franco 

Sweden 

Joann 

Austria 

Switr. 


1.7640-1.7740 
2.1620-1. 1620 
4.68-4.73 
79.8S-S0.45 
14.36-14^5 

I. 2220-18300 
4.2ZV-4.28V 
128.00-130.00 
188.20-187.50 
2330-2342 

10.70- 10.77 

II. 01-11.07 
10.40-10.49 
427-435 

29.70- 29.95 
3.42 V-3, 47V 


I . 7650-1 .7880 
2.1655-2.1565 
4.69-4.70 
79.90-30.00 
14.36-14.37 
1^250-18265 
4-23-4.24 
128.75-129.75 
186.25-186 .SB 
2330-2332 
10.70-10.72 

II. 04 V-11-0SV 
10.40-10-41 
428*7-429*2. 

29.72-29.77 

3.43*«-3.444i 


022-0.320 dia 
OJBHMSc dis 
2*rZc pm 
2S-3SC dis 
7-8**oro dis 
0.63-0.75p dis 
1 ? *-1*«pf pm 
195-510c dis 
65-SSe dis 
18-21 lira dis 
7-8>rtre die 
5*r8>fCdia 
4§-*iora pm 
2.55-235y pm 
16-12gro pm 
3V2Vc pm 

Belgian rate is lor convertible Irenes. Financial tr«nc 87.80-87.90. 
Six-month (onward daHar 1.17-1. 27c dis. 12-moath 1. 35-2. 10c dis. 


-1.83 0.6&0.7Sd<s -l.s8 
— 2JQ1.1S-1.2Sdi* -3.23 
EJE 7-6*7 pm 5.76 
-4.50 77.97 cflJ -4.36 

-682 17-t8*jdj» -484 

-6.75 1.09-1 .37d Is -4J01 
4.60 54>i pm 4.49 
- 32.73 800-1206dis -31.02 
-5.15 200-245 dis -4.77 
-10.04 56-61 dis -10.04 
-834 9V10Vd» —3.69 
-7.87 20V-24Vdla -8.05 
. 0 .50 V r V a pm 0.60 

6.78 6.90-6.70 pm 6.34 
5JE5 37-30 pm 
10.02 7V7 pm 


480 

8.42 


THE DOLLAR SPOT AND FORWARD 


April 20 


Day's 

spread 


Close 


One month 


% 

p.a. 


Three 

months 


p.a. 


UKt 

Ireland) 
Canada 
Nathlnd. 
Bolgium 
Denmark 
W. Gcr. 
Portugal 
Soain 
Italy 
Norway 
Franco 
Sweden 
Jaoan 
Austria 
Switz. 


1.7640-1.7740 
1.4410-1. 4455 
1.2175-1 .2215 
2.6540-2-6660 
4S.20-45.32 
8.1200-8.1450 

2-3925-2.4050 

72.15-73.50 

105.50- 105.86 
1313-1322*, 
6.0850-6.0755 
6.2300-6.2605 
5.8930-5.9060 

242.50- 243.50 


1.7650-1.7660 
1.4430-1.4450 
1.221 0-1 .2215 
2. 6556- 2. 6585 

45-26-46-28 

8.1200-8.1230 

2.3360-2.3970 

72.80-73.30 

105.60-105.65 

1.319V1.320’, 

6 .0650-6.0670 

6.2555-6.2605 

5^950-5.8880 

242 75-242.83 


(L22-0.32c dis 
0.65-0 .55c pm 
0.02-0- 05c dis 

1.70- 1. 60c pm 
9-14e dis 
3.00-3 JOore dla 
13M.27pl pm 
100-Z75c dis 
22-32edw 
9*2-11 Ilia dht 

2.70- 3. OOonj dis 
2V3Vc dte 
IJO-I.ISore pm 
1.78-1 .TOy pin 
llVIOgra pm 
1.90-1 .82e pm 

t UK and Ireland are quoted In U.S. currency. Forward premiums and 
discounts apply to the U.S. dollar and nor to the individual currency. 


16.S2>.-16.84\ 16.83* -16.84*, 
1.9440-1.9570 1.9475-1.9485 


-1.83 0.65-0.75dis 
4.98 1.80-1.6S pm 
-0.34 0.16-0.19dis 
' 7.46 4.59-4 AS pm 
-3.05 32-37 dht 
-4.58 6-60-7.0Gdic 
6-48 3.67-3.62 pm 
-30.72 200-e0dlc - 
-3.07 70-90 dis 
-9.31 29-31 dis 
-5.84 2.70-3. OOdis 
-6.01 9V1(H,dis 
2.49 3.36-3.20 pm 
8.60 4-88-4.78 pm 
7.57 2BV23* pm 
11 AS 4.88-4.78 pm 


1J5S 

4.77 

0.57 

6.82 

3.06 

332 

6.08 

33JCT 

3.03 

9.D9 

U38 

6.57 

232 

7.96 

6.00 

9.30 


CURRENCY MOVEMENTS CURRENCY RATES 


April ao 


Bterllng.,... _| 

UJB. dollar. _| 

Canadian dollar.. „ 1 
Austrian schilling.: 

Belgian franc 

Danish kroner. 

Deutsche mark 

Swiss franc 

Guilder 

French franc 

Lira 

Yen :. 


Bank or 
England 
Index 

Morgan 

Guaranty 

Changn% 

April IB 

Bank 

rata 

Special | European 
Drawing 1 Currency 
Rights ; Units 

88.8 

116.2 

-33.5 
+ 7.4 



Star[lng.__; 



a63143l| 0363050 

88.7 

-17.6 

UJS. 8 

12 

1.11113 i 0.99096E 

116.8 

+ 26.6 

Canadian 8- 

15.34 

1.35380 1.20859 

94.8 

— 1JB 

Austria Scha 
Belgian F 

6>i 

18,8748 ! 18.8266 

83.5 

-133 

14 

50.7064 >46.2106 

123.3 

+46.9 

Danish Kr.„ 

11 

9,11793 1 8. 13486 

161.0 

+ 103.4 

D mark 

71e 2.66593 2.39418 

114.3 

+21.3 

Gilnder__._ 

8 

3.98005 2.66680 

78.7 

-1S.5 

French Fr_..! 

9U 6,98234 (6^2427 

S4.1 

-58 J} 

Ura »,»..! 

19 

1476.69 ,1316.01 

136.2 

+ 30.1 

Yan 

5iy 274.338 ' 243.778 


WaUagim e gra ewenk D a em tos r . mi. 
Bank of Boglsad fade* (bass 
ms-W). 


Spanish Pta. 
Swedish Kr. i 

Swiss Fr | 

Greek Drieh. 1 


g 6,79234 
8 118.324 

IQ 6.61678 
5*2 tUl 
20 1 2 - 


6.04986 
106.588 
5.90122 
1 1.95048 
63.0447 


OTHER CURRENCIES 


EMS EUROPEAN CURRENCY UNIT RATES 


ECU 

central 


Currency 
amounts 
against ECU 


% Change 
from 
central 


% change 
adjusted for 



Divergence 



rites 

April 20 

rets 

divorgance 

limit % 

Balgian Franc 

44.&9S3 

45.1862 

+ 1 .TO 

+ 1.10 

±1.5440 

Danish Krona ... 

8.18382 

8.11770 

-0.81 

-0.81 

±1.6428 

German D-Mark 

2.41815 

2.392AO 

-1.07 

-1.07 

+4.1037 

French Franc ... 

6.19564 

0.23072 

+0.57 

+0.57 

±1.3743 

Dutch Guilder ... 

2.67296 

2.65324 

-0.74 

-0.74 

±1.5069 

Irish Punt 

0.686799 

0.691048 

+0.62 

+0.62 

-i-1.6689 

Italian Lira 

1306.13 

1317.18 

+0.92 

+0.92 

±4.1242 


Changes are lor ECU, therefore positive change denotes n 
weak currency. Adjustment calculated by Financial Times. 
Sterling/ECU rale lor April 29 0.663770 


Argentina Peso...[20,642 -20,688 h 
Australia Dollar...! 1.6785 1.680&! 
Brazil Cruzeiro^.. 269.97 279.97, 
Finland Markka..i 8.127-8.139 j 
Greek Drachma. j 1 10.108- 1 18.480 I 
Hong Kong Dollar^ I0.271-ia.28s; 

Iran Rial.. _i 146.60* 

Kuwait Dinar I1U»1 0.504-0.610 
Luxembourg Fr...i 79.90-80.00 
Malaysia Dollar... 4.1 340 A. 1440 
Now Zealand DlrJ 8.3050-2.3090, 
Saudi Arab. Riyal; 6.04 6.10 
Singapore Dollar. 3.7660-3.7760 . 
Sth. African Rand 1.8630-1.8945 
U JL E. Dirham ....i 6.47-6.53 


11,650-11,7001 
0.9493 0.9500 . 
152.43-153.19 ! 
4.6030-4.6060 I 
63.30 -63. BO I 
5.8080-5.8130 ' 
62.50* 
0.2865-0.2861 i 
45.26-45.28 
2.3375 2.3395 ! 
1.3035-1.3055 , 
3.4305 3.4326 
£.12952.1315 
1.0495-1.0605 
3.6715-3.6736. 


Austria-. 

Belgium 

Denmark 

France. 

Gorrr.iny_ - 

Italy 

Japan 

Netherlands.. ... 

Norway.^. 

Portugal - 

Spain 

Sweden- 

Switzerland 

United States... 
Yugoslavia 


29.65 29.95 
87.40-88.40 
: 14.33.14.47 

■ 10.9811.08 
I 4.22-4.26 

■ 23002365 
i 430435 
1 4.70-4.74 

j 10.70-10.80 
127V-134V 
1 181-193 to 

j 10.39 10.49 
I 5.42 V -3,46 V 
1 1.76-1.76 

I 92 97 


t Now one rata. * Selling rata. 


EXCHANGE CROSS RATES 


FT LONDON INTERBANK FIXING (11.00 a.m. APRIL 20) 


3 months U.S. dollars 


bid 14 1GI16 ' offer 16 1/1fl 



The fixing rates are the arithmetic means, rounded to the nearest one-sixteenth, 
of the bid and offered rates for 510m quoted by the market to five reference banks 
at 11 am each working day. The banks are National Westminster Bank, Bank of 
Tokyo, Deutsche Bank, Banquo Nationals do Paris and Morgan Guaranty Trim. 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 


SOR hnkod depos-is: one month 13>u-13*u per cent; three months 13V13V per cent: six months per cent; one year 13*»*13 7 n par cent. 

CU linked deposits: one nvorvrh 13*2-13*1 par cant; three months 13**j»-14*u per cent; six months i3 u u-14*u par cant; one year 13V-13V per cent. 

Asian S (dosing rates in Singapore): one monrh 15-15** oar cent; three months 14 1 V»-)5 1 i<. par cent; erx months 15-1SV per cent: one year 145*»-14*Hi per 
cant. Long-term Eurodollar two years 16V-15V per cent: three years 15*4-15*1 per cent; lour years 15V 153, par cot: five years 15V15*4 per cent; nominal dosing 
rates. Short-term rates ere call lor U.S. dollars. Canadian dollars and Japanese yen; arbors two days' notice. 

The following rates were quoted for London dollar certificates o i deposit: one month 14.80-14.90 per cam; three months 14.80-14.90 per cent; six months 
14.80-14.90 per ctmwt one ywr 14.70-14.30 per conL . 


MONEY MARKETS 


EUROCURRENCIES 


Further fall in London rates Rates ease 


Interest rates continued to 
ease in lie London money 
market yesterday on hopes of a 
bloodless conclusion to the Falte- 
iland Islands crisis. In the inter- 
bank market three-month money 
fell ao 13 i2 per cent from 13H 
per cent 

In the morning the Bank of 
England forecast a credit 
shortage of £350 m. The main 
factors were expected to be: bills 
maturing in official hands 
— £75m; Exchequer transactions 
— £I90m; and bank balances 
below targe! — £I45m. 

Before lunch the authorities 
bought £92ra of hills, made up of 
£4m ‘hank hills in band 1 (up to 
14 days maturity) at 13J per 
cent; £6Sm bank bills in band 2 
(15-33 days) at 13 per cent: and 
£20tn -bank bills in band 3 (34-63 
days ) at 12* per eent. 

In the afternoon the shortage 
was revised to about £300 rn , and 
the Bank of England bought a 
further £213m of bills, making a 
total of £305m. The additional 
help was by way of £lm Treasury 

MOREY RATES 

NEW YORK 

Prime rare 16*, 

Fed. funds (lunch-time) 14V-14V 

Treasury bills (13-week) 13.43*, 

Treasury bills (26-wesk) ... 12.66 

GERMANY 

Special Lombard 3-50 

Overnight rata 945 

One month 9.375 

Three months 9.Z75 

Six months 9.10 

FRANCE 

Intervention rats 16.0 

Overnight rata 16.5 

One month 16.125 

Three-months 16.25 

Six months 15.25 

JAPAN 

Discount role 5,50 

Call (unconditional) 7-1 5675 

Bill discount (Ihree-montfe)... 7.08375 


bills in band 1 at 13; per cent: 
£106m bank bills in band 1 at 
13i per cent; £80m bank bills in 
band 2 at 13 per cent; £lOm bank 
bills in hand 3 at 12; per cent; 
and £16m bank bills in band 4 
(64-S4 days) at 12 K per cent. 

Discount bouses paid U-13 per 
cent for secured call loans. In 
the interbank market overnight 
money opened at 13-13} per cent, 
and touched a peak of 15 { per 
cent, before closing at 7 per cent 

In Paris the downward trend 
in interest rates continued, when 
the Bank of France cut its 
money market intervention rate 
by 1 per cent to 16 per cent The 
central bank has bought FFr 
45bn of first category paper, 
maturing between April 24-30. 
The move was encouraged by the 
recovery of the franc in the 
European Monetary System, and 
follows recent reductions In call 
money to 16} per cent from a 
peak of IS per cent last month. 
C-all money was unchanged yes- 
terday. and period rates were 
generally steady. 


In Amsterdam the official call 
rate was cut to 4} per cent from 
8J per cent as a result of in- 
creased money market liquidity 
following various Government 
disbursements. On the open 
market call money fell to 5} per 
cent from 81 per cent- A tender 
for five-year Dutch Treasury bills 
takes place today. 


r 1 


1-9S|- 

V90K 

taf 

ti 


£ against 8 

k . 




Sw . 




ML 


-STERLING— 

81 - 

SO - 

-C 

ww 

| ’Trade -weighted l 

went index 

73 “WO SoamuBANKtaHiaLAliD 

1 J 1 -1 1 

1 N D J F M A 1 

L 1981 1982 J 


International interest rates 
followed Eurodollars down 
yesterday, although there were 
exceptions, notably the . lira, 
where the growing political crisis 
in Italy, led to a firming of Euro- 
lira rates. 

Eurodollars retreated on 
indications that the present sharp 
rise in U.S. money supply is 
regarded by the Federal Reserve 
as a seasonal distortion which 
does not require corrective action 
by raising interest rates. 

Eurosterling rates also 
declined, but this was partly in 
response to hopes of 3 peaceful 
settlement to the Falklands 
dispute. Sterling’s initial 
improvement in the spot market, 
coupled with falling Eurodollar 
rates, reduced the dollar's 
forward discount against the 
pound. 

Euromarks and Swiss franc 
rates eased slightly but lower 
dollar rates were the dominant 
feature, leading eo a fall in the 
forward premiums of these 
stronger currencies against the 
U.S. unit 


LONDON MONEY RATES 


i Sterling 

April 20 Certificate 
1982 j of depoilt 

Interbank 

Local 

Authority 

deposits 

Locantiitii. 

negotiable 

bonds 

Finance 

House 

Deposits 

Company 

Deposits 

Discount 

Market 

Deposits 

Treasury 
Bills * 

Eligible 
Bank 
Bills « 

Fine 
Trade 
Bills 4 

Overnight.....^. 1 — 

7-1SV 








11-13 



__ 


2 days notice..! — 

-• 

13Jfi-13to 

— 

— 

— 

— 

re- 

— 

— 

7 days or — 

— 

— 

— 

rere 

— 

— 

— 

-re 

—re 

7 days not Ido.-! — 

13V 136g 

13la-13l3 


' 

18V 

12V 

__ 




One month | 13{£-13A 

13*8 15V 

135* 

14Sb-14 

13ft 

14 

12V 

13 it -13 to 

13ft-13to 

1878 

Two months....! 13,% 

136fl.l37g 

— 

14V-137,, 

13V 

14lg 

I2*e-i2v 

13-13«t: 13 

13V 

Three montha, 1314-1513 

13l4-137| 

131* 

141 B -13V 

iav 

14 1* 

12V-13V 

15- 13ft 

12&-13 

13V 

Six months. j iff. '4 15 to 

13V- 1378 

15V 

1319-131* 

13V 


— 


127 8 

' 133b 

Nine months...., 134-13to 1 ia^j 13 "b 

— 

1419-1SV 

13V 


— 





One year. 13?4-13 Ij ( 13J(-13t 8 , 

13V 

14-13V 

13V 


— 

— 

— 

— 

two years — 

. 

14 

. . _ 



— 

— 

— 

— 


Local authorities and finance houses seven days' notice, others 3 even days fixed. Long-term local authority mortgage 
raiec nominally Hireo years 14*i por com: four yaars 14*4 per tent: five yaars 14^ per cent. $Bank bill rales m table 
are buying rates (or pinna paper. Buying rates lor low-month bnnfe biVg 13*» per cant; lour month* trade bills 13V per 
cam 

Approximate aeUmg rata lor one month reaswy bills 13 pw eftnr. two months 12V per cent three months 12V pw 
cenr. ApproMnale aellmg role (o r one month bank biUa 13 per cent; two tnomhs 12V per cant and Hwb® months 
12*V»-12V per cent; one ■month trade brfls 13V per cent: two months 13V per cent; three months 13V P* r cent. 

Finance Houses Base Rates (published by the Finance Houses Association) 14V percent from ApnJ 1 .1982. Clearing 
Bank Deposit Rates for sums at seven days' nonce 10-104 per cone Clearing Bonk Rate* ter lending 13 -par cent 
Treasury Bills' avgrago tender rates of discount 13.1993 per cent. 

CerahcatBs of Tax Deposit (Senes 5) 13V per com from March 3. Deposits withdrawn for et«h 11 per cant. 


Financial- -’Tun® Wednesday Apr ti 2 l 


Apri 20 

1 Pound St'rtlngi 

U.S. Dollar 

j Dautsehem’k Japan’s* Yen French Franc Swiss Franc 

Dutch Guild* 

Italian Ura CanadtaDollarBcIglan Franc 

Pound Sterling 

• 1 ! 

1.766 

[ 4J836 

429.0 

1L05 

5.443 

4.659 

2331. 

2.156 

79.95 

UJS. Dollar 

| 0.566 > 

1. 

2.399 

243.0 

6.259 

1.950 

2,683 

1320. 

L221 

45.28 

Deutschemaric 

1 0.236 ! 

0.417 

1. 

101.3 

2.609 

0.813 

1.109 

590.4 

0.509 

18.8B 

Japanese Yen 1,000 

| 2.331 ; 

4.115 

9.872 

1000. 

25.76 

8.024 

10.94 

5434. 

5.026 

186.4 

French Franc 10 

1 0.905 

1.598 

’ 3.833 

388.2 

10. 

3.115 

4.249 

2110.' 

LB51 

72.35 

Swiss Franc 

. 0.290 ; 

0.513 

1.230 

124.6 

3.210 

1. 

1.364 

677.1 

0.626 

23.22 

Dutch Guilder 

| 0.213 

0.376 

0.902 

91.37 

2,554 

0.733 

1. 

4B6.B 

0.469 

17.03 

Italian Lira 1,000 

! 0.429 

0.757 

1.817 

184.0 

4.740 

1.477 

2.014 

1000. 

0.925 

34.30 

Canadian Dollar 

! 0.464 

0.819 

1.964 

199.0 

6.125 

1.597 

2.178 

1081. 

l. 

37.08" 

Belgian Franc 100 

! 1-251 

2.20B 

, 5.297 

636.6 

13.82 

4.306 

8.872 

2916. 

2.697 

100. 




U.S. 

Canadian 

Dutoh 

Swiss 


; French 

Italian 

Belgian Franc 


Danish 

April 20 

Sterling 

Dollar 

Dollar 

Guilder 

Ftomc 

D-mark 

< Franc 

Ura 

Conv. 

Fin. 

Yen 

Krone 

Shortterm 

13V-13to 

141q-14V 

14-15 

3 A 

ji=-a 

Sfa-BV 

1 16to-17to 

17to-19to 

. 1470.1670 

13to-13Ja 

6 to -6 5, 

2058-205* 

7 days' notice ... 

1314-1312 

14V-16 

14-15 

6V-7V 

lto-2 

8&8-8V 

| 17- 18 to 

20fie-24 

1 16-18 

14 to -145* 

6S0-6V 

20-21 

Month 

13ft-13ft 

14Ib-15 

15-1558 

7fc-S* 

4V-4V 

au-Bt-i 

; 19-20 

33to-345a 

| 17to-18to 

1450-1470 

6ft -6 ft 

19- 19 to 

Three months....... 

13V-13V 

14,8-16 

1612-1578 

7U-8t' 5 

47 b -6 

8V-87, 

1 211* -22 V 

24-26 

! 17V-1BV 

145,16 

6ft-6ft 

18- 18 to 

Six months 

ljft-13li 

147 b -15 

151,-1618 

Sr'iBrJ, 

Sft-5ft 

850-85, 

1 21 to -22 to 

233*-24to 

| 165,-1754 

1450-1470 

Qft-Bft 

17*4-175* 

One Year 

13fs-15i: 

14«-lBft 

16is-16to 

Bto-858 

578 6 

8ft -8ft 

| 19-20 

2358-24V 

I 16-17 

1498-1478 

4^4-678 

16*4-165, 


FT UNIT TRUST INFORMATION SERVICE 


AUTHORISED TRUSTS 


Abbey Unit Tst Magi*, (a) 

72-8Q. Cote*** fid. Ajtafeun-IE'* SW . 

Amgean -0^ 2J8 “ • 1 

uS5a m 3 Ha ftS I 

SubiT-iii iBg ClUlffi M Wrt tttft Ttt. Mpw. Ltd. • KUnwert 

WferWiwldsBonil^Klb Safi --3 *.46 HH6.UBWM 
lm.Ta.fit 

" ' _ WN+Z2 


(fait 


I: 


ABest Harvey & Ron Uirit Tst. ttngre. 
*5,ConS«. London EC3USP&. 01-6Z363U 
AHRSHtTrea hL4 962)*L0l J2.D. 



0X4238809 


C tnis i TiwL —- : 

MM Manat Mgh fac.*_| 

Re cowry 

«STnm . 

■WMlfr *M»« fa«MMd9 


AJBed Hnba Ltd. (a) (g) 
hottro l 




*4 

lieAU be mm 15 


inndwry S4^EC2A IPO 

, J2*&fzzS& 


Crescent Ifatt IA Mnpi. Ui Mtf - L * CU* M . 
«McMh0res,Cdkw9hX OSauzaASCSEt ibv SiM CnAeee^ U mMob CCZNZ tM 


MKti FUMM 

Afllodltt 

Brit fab. Find — ™ 
CrawOi A [acoat 


EtesLAlmLDn £4 

MM CreHal — 10.2 

HauUwhma HL4 





& SS^. 

424 Cws-TakypL^ 



t£5£SiH=W 


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•nZBCW MM 

CanhRMJU, Aftestwy 

^•^2538* •! 



» Dartfafittm Drift Thsst Mogt Ltd. 

^ b a n fa Mo u , Tobwn. bwamWBJE. 0809862271 
Tool Pol (Mt 1 MJ222 *39 . 


i Hdfg 




SR^i».Ol«PfaM 014061IMA 


DMertHOMBY IMt Fund Mngan 
3606 New ftaed%ECMWU. QU384485 

Obe.toe.MvPU— J2 SSl7 ZTlA I SJXt 


Uwflm Ai U M itwHm tu. 
X*. Stay Are. K3AW. 


Donbar DhH Trist tfasw ltd 
53. P* KM, tAndsaSHa&K K1 01-990 ZL22 UfeTOtaa 

saas s 


SmtfarCaVRL — tfiOX 
Zat>3aSr.Cor&n_^F 

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Mct.Mln.&Ctty 



E. F. tW u e hw fa r Fired Vfagt LtO. ■ 

44, BtoenutwrySfalre, WQA2RA 0X4258699 

'tSsJB. &|«l» 


. IncamaExBivtl 

FhrEasEtonnUl 

SwUerCo. F mi- 
U-SLA. Erenpt^^ 


faa Equity & Law tfa. Tr. ML fa) (b) (c) 

*menfarsBd,HWiVlhiwwta. “•’* 


049433X77 


Anderson Ifatt Trust Man age rs Ltd. 

6% Lovfen VW1, ECZR7DQ 01438120C 

i U.T -K»Z.a b7.9M — J 3.6* 


UKGMLT4.MC 

UKGMb.Tn.4ac.. 

■ LtoLTAAcd 
LlnLTM.fac.1 


Aasbadw Unit Mgrat. Co. Ltd. 

1, Nople SL,EX2V7JA. m^7»493J 

lac. MonOVyFood B660 nLg — j MJB 




Far Ed Tst. AcC 




ifiaif UL 

UvMUUTC.MBKd.lH. ' 

Hmw IM Plata UenvoM UWXKS 

ffiSS&fnrergi • - 

RBI* TM.-Cm. Fd. Msb. LhL 

4B5aCre°ro!i^bMkMCC*M6U3m-23fr6044 

asssartrffi* 

prkes re fart Ji Una Mbg *r fadi 30. 
Sam A Frespe r Mwop 
4, Grant St- Mm, Ltafc" EC3P 3EP 



Leka^GoiiU B7J) 


5l27 


FMtHy IntonatfaMi 

20, Abriuth tata Lmdan SMN 7AL 


Antbooy VMder (Mt Tst MgmL Ltd. S5&3E 
IMdegataSt, Loofaq, El 7HP. BWM78B23 c^ShAtawfa 

saaszzja :d “• 


72 UqA Life OnHt TsL Mngrv Ltd. 

Z SL MaiyAw EC3A88P. - 0X4Z3U34 S^Ftaliic. 

Ltd. EoMyAconCS^JMCLB 29561 ... -1 393 HqhRateii 

28399H 

052 Local AbtfanttSesT MntoM DmL Tst* 

77, LondboWML EC2N ZDS. 01WB1815 





tatto-Locd MtoSe 


Ud. faXc) 

37, Qneaa st, Londoo, EC4 R ibv. 01-2365281 fames Fhday Unit That MngL Ltd. 

nrth tea - 35^-fOg 3J9 10-14, West HnaStren. naigeir. 041-2041321 


jej9 

00%WttMnmN)_455 
ElBtamA loumotL- 
(MUMtHraireO — Z92 



(A cua i UMfaJ 3643 

S relta CBr^ rei ie v ^|4X4 




M&c «mo (rXeXz) 

Tine fan. Tbwr n-l SEX 6BU 014264588 


Prtaa oTSiflTHat d^TApSlL 


4.97 

3 ?2 FT a aa ffn gtop Unft Mgt Ltd- (a] 

***** 64. lontan WM|, EC2M 5HB. 01-6285181 

JUeer. A Gen. .. . jm 

9^ (Acxun. UnRs) 

taiToanL — —IffiU 


Ardmay Unit Tst Mgs. LhLCaXc) 

317, Wall HoBxon WC1V7NL 01-8316232 
Aitta^Ftad „EU23 3207| .._J 6u6T 


CapfeHTsL. .. A* 

Uccum.Untta.1_ TiH 

ComwtBte&Ott— 194 
(Acorn. IMttl S2 A 

Extra In cotreTtort— 55J 

toLGmMi fd. TO* 

(Accun. Unit*} 764 

47A 

TJO 


\ April 15b Hod aah. dq> . 


Retart Fits* That Mgt Ltd. 

28b Atotfirete SL. VU. 

HcfaL Fresar UL Tat. DH4 75.0 


Portonaoe (VfctL. Manchester 061-8342332 
MmrigKRL Apr! U. 1100.9 1B7.4M -23) 4J5 p^, M f, 

Pbdreu EmL Doridua. 
Friends Pm. IWIs-WJ 
Da Accun. Dfixl 


Borcfan (Moan LidfaXcXn) 

Unlearn Ha 252, Romford W, E7. 014B4S54C 



. 1524 

, j— SA 

DaRancW wa 

Da 500 MJ7-6 

Da General «4J 

Da GUI & F*t Inc. he 464 




Da Gcr. Padflc toa^n 
Da GkmHi Aec-__^pL5 1 

Da Inoome Trua 11158 

Da Prf. tfre.TsL_Zp65| 

Do. Recoaety Ml5B 

DaTrtBteeFVnd Pwi 

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DaWldwWeTd. 

ghC-taFO Acc.B 

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47.tag 402 6TO 
48M405 13.09 
46.11+0. < 0J9 

465re-HLC 059 

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£8 




Ml. Band 

148 r _. .... . 

3.96 ExenvefaQaar’ 
2M Erennlad.- — 

■9.'. 





Schroder UaR Trost 

SO, SUtartralre, WC2 
CaoRdL. ^ m* 


Ltd. 

Deatfan 0705 27739 


Bpn <>XbXc) 

ToLsssasB RKSRsssr 

tfi IBgBSrdLi 

vm Funds hi Caret*’ {Aoaan. Unto} — iSSj 

5W PMUkTrere«.HrosMw,WC2; m-4054300 »UWM 


G.T. | Mi Ma n ag er s Ltd. 
Plrebury Ctata EC2M 70JL 


Predon Ex. April 




4-14 7J6 
4*3 7.16 



lAoua UnkaJ.. 

•1 

tAcomOrats) te* 

faMV_ Jc.9 

i Dawn IhUB.' J4L7 

Gn«Me£lt4y_i«.7 


(Accun- UMU... 
^ilCWWfacfcJl-, 
■Penren April » _ 





G.T. Inc. Fd. Ua . 
G.T.U.S. AGin. 


11935 

12221 


re****-® 


tT. larei GGea- — 

G.T. Pens. Ex. Fd.— |m9 
G.T. InO. Fund te92 


Baring Brothers & Co. Ltd. 
a, Bbhopsgste, EC2N4AE. 


G.T. Far EtaAGeaB99 


01-283883: 


G.T TedL&Gth.F4.|- 
G.T. Euopeoa Fred_l9£5 


0M2B8m 

njjg » 
its 

U7.M +L9i 


8L Geerga*c Wbn StMmpe. 
GMtfntlre. gg 


Ltd. 


043856101 

Hd-« 



Co. Ltd. 

14-18, Gmhaai SL. EG2V 7AU 014068099 

15 |U50 IZLlI S -US 

4.15 


ssaiBf 


M. April 5 


StmtanTnal — {264.0 ,._.j «9 


Da Acoan. [3668 382.fi 

Ned afa April 27 (by 1200 aoaaL 


6. * A. Trust W (g) 
5 Raleigh Road, Br«*>*oo0- 
G.&A. 4472 



Stock Exctanoe, Ujodou, EC2N H13. 01-588 628C 

BW^toS23 M4.9( | 3A0 2 SL M»y A*a EC3A MP 

Acc Unas **Marek23- 1722 40631 

B'qate taL Aprtt 14„ 3*7-6 372H 

(AccuaAprel4 - 407.1 436A 

Bedaren too. Cap.* 4102-0 30501 .. 

ItaU sab. dear Moy& “April EL ~*W mM > deottaos. 


McAaafly Fund Mmarmriif Ud. 

KnKHre.iatoWBnanlSLECA 01-623*951 
<02 7 7 1 250300 De**l MlTtL Acc.„fl53 39if ..„J 895 

SM.U « J|:4 SS 

Gin r and Inc. POJ 75-M -231 457 


, . H73I 446) 

38 U143 129d. 

•Far ere ofDpt fink oUy 

SuttMi AmicaMe bn. kfagrs. UcL 

150 S Vireartl SL Glasg***- 041-2462323 

EmHy Tras (team-1117, fc 3ZLfi4l.fi 5.45 

ScottS* EqaKaHe Find Hpv lid. 

28 St. Antaias S3 Edtotorgh <80-5569101 

Income (MU M) 6UM -tOrt •.jot. 

tanlMi .JhLS iz M4L3 5 l3 • 

DnUg dir wodoasap. 

Scottish tMUnrs* Fond Munujwiwiil 

PC Kn9QZ.bMonntJii65tn: CDM63 6008 

RvsisT4.AprilU.M4fl MUM J — 

S1MCO Stony Funds 

66. Cannon 5/w. ECV.bAt 0L2361474 

sisrcot^irLaer— tfMo — I .... • JJi’i 

r2C07Do,T2cr.’ScC - * 4 125(1 

’ _ _ 1 13SS’ 


gg ISSMSSB^ fi 

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01-6236114 


Bridge Fund Managers (aXe) 
8eobHse,KtogWWlamSL,EC4 01-623495 3 



b^Senwsry 


6L4s — 2lj 
561a u| 

683 

mo 

25l7» 

■ 32.65 


1303 

DctCcs -Tfci Wfc4 tpw. 

tWas Dgmvinshb. 


fatialai Trust- — - 187 

RlttMtTrt. (DccJ 1074 

BrOhh TsL tDWJ 1089 

CO nanmO ty Shue- — 389 
Extra Income Tst — SS 
For Eau Trust . £L5 

GW Tnm 227 

High lacMtoT* gl 


I name Fund.. 


467 


wmm i-azi 

an, reren 

1 1151 -*Lfi 

m 


236a 401 12.45 
625 +06 9.46 

951 406 7.72 

In^ Agenda. E17 37 18o0 +G16 539 

lae.&Grth. Exaflpt.. 1281 1310a +3 J 623 

I08. T«. UtccJ — *48 S.6 -K12 091 

bid. TSL CPtaJ- — - 493 5&B 4 OJ 091 

JawTresL H.7 32t +0-3 R97 

5oectaSte.Ta.__ J9 j4 *73 +0.6 3.4* 

UKSmCaBetTnat. ZH3 305 -*fl3 354 


Mercury Fund Mngers Ltd. 

30. GrerirenSC, CC2P2CB. 01-6004555 

Gex i*a„. ~~ ‘ir . W* iSa IS 

Inc. tec. 6L1-MM 7.a 

KM. dw_— -™T wii wn*s: xyt 

ESvLDtaAaiiin7.^5 3 <n2 


siuCCSM - ' 

TU-uawatB-*^* Oepaw Fafis. 

Stenwt IMt Tst Mwngm LMfa) 


45. Charlene Sa. EdUavfic 


tfcneeuam Fane- — 


C31-2353 ZTl 


JkCiM 11*1 |XS, 

W.-rrsncH Unfa __MO» 

-Br.vtfi.taare BOP* 

AecoiL UsdS S»9 

— EurapawFewL (SJ-l 

DWL 4?reL & Fn. *Wed “1 





Britaenia Gp. of Unit ThsU Ltd. (aKcXg) Qooett (fata) 

jsaasafctt 

UK Sti o rW i t Fund* ... 


3kmS?o^ — IS® 

fS^HMlnc. -1772 
Extra Inc 


1753 

Oo. Acom Untt_— JZZ27 

466 SLEanpcaiMv-SlNU 

5J9 Ned dealing April 23. 

M waon Mans g rmrnt Co. Ltd. 

59GiastrenSbwri, EC2P2DS 01-606 4433 

H-S Bar, -gin. GW April 2C 986 
CAccua Uidfci — 

Borvgta S. Aprs Ifa- BOB 
(Aoam Units)—. — WL5 

Endm. Aaril20 388J) 

Uccum. Ufltel 4248 

Gmntnir. AprB 16— 12L3 
(Acnxn. Uate)„ — UM 
Ln. &6 di April M.W4 
[Accren. UntteO |M2 



Gnanffres Royal Ex. (left Mgrv Ltd. 

to»al ExWi»ge,eC3P30H 01-6238011 

(aa)GwrMHTR — D3S8 14071 +3^ 430 


(fi) ft) (c) Mwtm te Mw 

Prenfler UT Adtofa, 5, teytagh 1^ Hi*n?jS5!bSl 



MhSand Bank tomp 
Drift Trust Manaoen Ltd. - 
Courtiwod Koree. Slhar Street Mred 
SnetOeW,S2 3RO . Tet 0742 79642 

^^S!!!.^?^..!!33E6 341] 4Cfi 403 

DO. Acc. 388 41.fi 4X1 403 

C oua red U y a Cot — P.4 913-02 147 

Do. Are. IG69 XS6fi -02 .147 

Map gw&Fjbiw re; 4oa -res Ufa 

2ffl So. Are ELD 53i» +01 1216 

z 83 MghYleM Ml e&M40J 869 

287 Da Are. BA 903 *0< 4W 

Income W.I 6a«4U 646 

Da. Acc. 883 95fi4L« *46 

Jnpre and Pacific W.3 -M l 024 

Do Acs. b46 69Jff4(U 024 

NorBi American W.* 508 HM 249 

Do. Are 517 57 JI -OJ 2*9 

Oreneas Growth— 43.1 *63^02 217 

Da Acc ^ 497 -Safl+42 217 

Etai^Erenpr* JXjp 139-3*1 t09 

QaAc£vZ~_~.5p U&fi-. 589 
•Friom at Ape 1A Next doBng April 23. 


Waster Find Itagpi LtaL 

Hinder Hse, Arftw SL, EC4R 99tt 0X423 SOHO 

“ rfc-S ififll ::::J 


Sun Affiance Fund Management lid.. 

StaAHMnreltic.Nonfam 040364!4: 

ss 

Swiss Lite P*H. Tst Man. Go. tlAtoKe) 
*-X2CWPS*faUrelan.CC2V*AL OT-Z36384I 

W- 

nW’n Dts-.f. . „1t9?37" 49 ad ..Tj uw 

Fixed In- Acct U3D44A laejifi ....J U83 

•Pnatc aa TtortI M. teri dtfiro Mry !2 
fjfacxs X ApnJ 7. fall <teri07; Hoy 5. 

Target Tst fttogn. Ltd. (a) (g) 

30 Gredunt SL,' £.C2. OuLIxe: 0296 5940 

Cwmwfty !M8 6*fi .. . j - £4? - 

EiWTTT fe-7 ,B-SJ - -I 042 

rtxactx Tfito nn ij 4i.a 

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GOt Incsmir m 3 fiJ.fi 40 r 

Imeanvac T.w« BOZ 5al| 4fl2] 

Spocta S^taioni — j35A 3t3l 4(j3 

Anmricao Eaate 44* 43.fi -ttq 

U.S. SpdL Band Fd._ SI MAfi +OJj 

PzxriK.fi* 1m £32 465j+aa 

lna>«^ 29&B . 32S +03 


Extra Inconv. 


Erenptl 

^ MLA Unft Tbest Mngmat Ltd. 

OktitorenStoHLSWAfilG. 01-2228177 

MLA Units W9A 10451 4021 402 


P i e ta c u re Strew.. _U12 
EquHv — — 1513 


Money Mmstma U.T. MgnL (fi) 

163, Hope Snwcf, Gtaarec GZ 2UH. 04O2Z1 BZl 

SS:::] ^ 

April 16, 


Fd— I 


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GkmUi 1404 

PtatHHAM Aterl 21 12268 
Eqnty Ex. Apr* 21 -U^l 
Ead^rE*. AprH 21 _t«04 
Cvfiol HV AorJ 21 — 137 A 

Carfloi Acc AprH20.ft3.4 ._ 

For Torer Uoti Tout rime see 
Dwfar Uett Tract 


511 


649a 401 1190 • 
122 b ... 1386 
551 40.4 b JO 

591 +G-3 

44* -HJe 316 

a«o» +35 535 

3266 -DJ 6.4S 
5303 -86 645 
40.4b 48* 7 AT 

1*3 4891 7A7 


330 


Mahal Unit Trust Managers (aXg) 

BnretSL A»e. BtonriWd St, EC2. 01-63839002 
IMual Sec. Pta— 1500 5SJB 403 7A0 

Bfabta Inc Tst — - (75.0 SOJJaj +13 80S 


Tradas Umon (fait Trust Manne rs 
100, Vltoed Street EX2. 01-6288811 

TUUT April 9- 1656 698M —.1 589 

bmdbnflc and Gen. Secs, (c) (jr) 
91-99, New Lmton Ml, Cfahnribrd. 02*5-51653 


Mutud FBgfcl 


National PmvMant tire. Mnprs. LtaL 

4ft GracactaatliSL,EC3P3HH. 09-6234200 
NPiah.Ua TsL (783 ,74flj 4281 560 

(Acorn, unas) Jifla i iota +53 sso 

NPt O’MB Trta** - 233 ma.Il 210 
(Aoam UaBU**— — B078 aSfi — J 210 

"Prices 00 Mnca 25. text dfaBea April 2ft 


MHonM Weatnflnster (fi) 

160 Cbeapsk**, ECSV6EU. 
Capita (AcamO tllfl.9 


Te ul noi iju y 

Ex emp t 


Buciontar Maiaaemeut Co. Ltd. 

The Stock BoctreeR, EC2P2JT. 01-5B828M 


Apanesn 8 Pac. Gth. 422 
NorthAn+Gtaft. Trt_ 543 
PortfoWoia.Fd — 7R2 

—172-5 


BucKlmFU.Artl5J 
Accun IWts Aril lsl 

SsKttflSnd 

Marfl»oFU.Aufl20. 
(Acton. Uts-l April 2D. 

Sate C06 Fd/taUlA— 
(Acorn Us-) Apr* It.bQOQ 


MEL. That 

Wfton Court, I 



BwWcnAMff 15 — 96.7 

(Acton IMh) 17B-B 

CataDMAprtU 1805 

(Actum Units) 2607 

RekSup KL Aprtt 15 1076 

(Accun ItatsL U45 

Vxn. GvrtfL April 20. 63.1 

l Accun (WbJ M8 

V3mp.KY.Apil 20- 69.7 
Vngd.TsLApfll4„528 

(AtcmMM 663 

IMctanor Acrri 15 S52 

(Amur. Unta)_ — — _ 1169 
W k amoorP*- Ajr. ft 745- 
(Actum. Units) 107.0 


BM.1 

.1891 — 

1925n 

277 J ..... 

1X3< 

3201 

67.* -fli 
90J -O 
74( -Oft 
561* 

705 
TO! 

m3 


601 

tan 

635 

635 

452 

452. 

3.51 

351 

8.4* 

S.97 ■ 

597 ■ 

560 

560 

9.35 

933- 


Tjrmbfl Managers LbL(aX*>X4 


LtaL (a) (g) 

Surer. (006887766 ■ 


(Accun. Units) 2900 

Inc Ems. 7*2 

Ukcum. lintel. 976 

flortt Amr. Grtoi_ « 663 
■Accum. Units)., — . g.7 


FarEBSsem. 


Canada Ufa ifatt that Mngrs. Ud. 

26 Wfii SU Pacten Bar, Herts. P.Bu5U2S 

CaaGen Dbt 149.9 52fi4Q.fi 486 

Da Gen. Accun 17112 719+18 An 

Gtt. itcoca; DM. BB 382)d -HZa 677 

Da ina Acorn m ^ ^ jgj 


GHt & Fat InL Tnnt.1 


Hanson Services Ltd. NortbgatelWtTrest ManaBBrsUd(cXj) 

4GOGLlMtsaUndMES3P3EP d«51009* (H-M64477 

BrewtolntLGr. toe. 4*9.1 5L7) | 431 


B&ras&BSi 


549 

sm 


Capel (James) MngL LtaL 
100, Oto Broad Su EC2M ISO 
Crarital GI78 " 



Wortti American 

Wees on Apl 


Mi SatruM Unit Tot. Mgrs-T (4 

45 BeediSL, EC2P2LX (06268011 

to) BritWi Tnut— . — B4KI3 aafi 45Jj 433 

to) Capital Trust 39.4 -iSx 4.42 

(g)DafluTrwL 953 Item -07 £ffi 

(O)Empwi Trust — M3 26m 2 SB. 

I« FvSS. — 383 SB -fjfi* 046 

(fij nmeta That—. 1358 1453d +07 3.94 

toWntGPnLutfcaa aa-toi ms- ASn-TtoE"'“' 

(UGUtFJ.GrmMth .—(264 . 77$ +QJ 430 — 


Carr, Sebag Ifatt Tract Managm(a) 
57/63, Princess SLManctwter 061-36566! 

Carr, Sebag (top. Fd. .WL7 453M 403| 236 

WiM ss 


IblHIfiiYMdTa^. Z73 
{bltncaneTnet..^- 2 98 
(gi UtHThtB— «.l 


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^J^^^iS .15 Sklo 


Morwk* Unhm Inreme Cro np ft) . 

P.O. Bo 4 Norvrictv NRl 3NG '060322200 
GnapTsLFtad 15213 5»7l+Hli5 532 



Pearl Trust M re to g e r i Ltd. (akaXz) 

252. Htai Hoawnv WC1V7EB. 01-4056441 
Pearl Grourttr Fd. — (334 353M +0.71 4 94 

Mq+OH 494 

Pearl UoMTsl. -?B “ 

(tam.uiw- 



cbi 225 iue 



Oarlneo Ctarittes M/R fired# 

ISvMttgafa, London B2. 01438412: ^ 

iKomUMSxZj 12232 1 — J KLOB WCBm tacw Ta -&J 

.Mar3Zi 242XL 1 ( 1238 HK Fa- East iGaTstm. 


Pafean Units Adfafa. Ud. (gXs) 

57-63, Princess SL. Mandiesler 0ol-Z36S6BS 
FWIcan Units —11322 U22M +ftfi 4.91 

HK Ifatt Tntt Mugon Ltd. (fi) - Ffimetni IMt T^nst Mngnrt. (a) _ 

4ft Hart SLHanfarflopreno 0491266(6 

(4de Recovery. [47 5 


Charities OfficW Invest fired# 

77 London WM, EC2M 1DB- QU88181! 

SSSSSlSd as I’d “ 


HK Mmtat Leadats -■ 
HK Private TsL p] 



if^alihrihfa IT n i mi i ■■ ■ 
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500 


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4JD *9. BtooranurySa, WC1A2RA 0L62388» 


(Amwt. lintel 107.9 

Mfliurt Soouroe—. 13U3 

Accum Units— 173.6 

ScnL Inc. 1736 

Ufa Wad Cap. GwUr. 813 
(Accum. IWK),- — 1005 
Life, 'dial Ex-lnaGwOL S3 

(Acoun. Unto) W3 

Ldn 1MUFtn.PriTy.226 
(<Vxwn.Urtal H3 

bfeWpAHMiK Fifty- 99-0 

Ldn. WaU lilL 352 

Ldn. WaO Spec SI is . 1353 
Trojta & Ga-tepe*K Fatal 

Demand Find* _ _ I 1 ir«i» 

Money Fund — — | J jasa- 

DnaulliarisedLCBSi Depafi Fata 

TSB Unit Toots (b) (c) (y) 

PQ 3n 3, Keens Hse, Andoyer, Hants, SP10 IPG. ■' 
ffib4 6216ft ttatoBto COM 63432-3 

TSB Ammcan K&D 51.7 -Qjj i>7 , 

DtL Atcum — I4BJJ 5L7 -o3 227" - 

TSB GonerM 79.1 +L< 435 - 

DO.Aretal tea mi +L9 455-. 

TSB ilname. BZ8 891 +1< 7J9 

Sfej gta j- U062 1141 +W 7 m - 

TC9 PtoaBc — Mil 46.4 +0.7 iS 

Do. Accum. [43.1 464 +0.7 lit . 

EB 2 t=» 


Ctdefta fa Trust M an agers Lid (a) (g) 


Jffi *MlrJ 12 


ILNewSL CC2M4TP. 

Amman CO B7J 

Austral Inn U) 17 S 

Far Eastern To. U)._ 346 
Hta Income 342 

laTTronh ) m 

Prtl. & GOt Tst __ ISA 
SnaBcr Co’s Trust _j2ftl 


Iwertw at Baak of Iwfand (fi) PmfacM Ufa taw. Co. Ltd 

Pwreta r UT Admbi 5 RafiaMi Ro ad, Hu ttog 222, m rewpfl pr . FC2. 
Btadwwt&ta, <a77)aaSB9 pwMetefSt 

Ban S3.fi -rt.fi. im praneGwap.; 

Pitas Apr* S teat snb. *v Aprt A PriMflc HMi b£ _B9i 

Himtaent fateilgwce Ltd. (a) 

+03 V3W0rah*p», EC2A2AB. 01-6286626 PtollHc ats^EjEj 


01-283 2632 

■Hlfl 137 
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C lw i dfirtw i Ffind Mamtganfg} 

57^63. Prineea St, Mancheriar. 061-236566! 

u£r£uSSriZ!!Zl!®5 • 558 +ft9 !1 

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Ofatar Bsodt (fi) 

Waring Street, Belfast. 023235231 - 

Ujlutaer Growtti — 143.4 4661 +1X1 539 " 

01-2476533 Tmst *«■■» & **8"*- Ltd. 

+Lfl| 162 f^^W^’«fa»ia.EC«a9R 1 0L623495i ' 
*0.7 357 Fdara Hse. fi«*J [54.7 „„.J 435 J 

+03 LS 
-01 210 

1U ffl 


Confederation Funds Mgt Ltd. (fi) 

50, Chancery Lane. WC2A 1H£. 01-342028! 
trowhFund 1 728 ffiMf+afi *M 


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Ss* •"•and « 

— a# prefix refer to LIS 

_ _ _ . deflars. Yiekta ®6 ism in tat column) afln, (o-m 

240 Pnafl. PnrtfoBo Mngrs. Ltd. ft) (b) (c) ta*j enmn . a Offered prices iachde aH 
350 Hoiborn Ban, EtlNZNH. 01-4GS9Z22 b Tcdar*s irtari c Ytag (used w afire- 

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1, Puarrasttr Row, EC47DH 01-3483999 * - ■ 

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Wallis# 


FINANCIAL TIMES 


For 

Construction 
01-464 3377 


Wednesday April 21 1982 


^Tarmac 

"construction 


Building.M 

Tel 0902 22431 


Queen’s Awards sbow tenacity of major exporters 


COMPUTER systems, aero- 
planes, diesel engines, bops 
and flavours and fragrances 
figure among the wide variety 
of products made by com- 
panies winning this year's 91 ■ 
Queen's Awards for Export, 
lan Rodger writes. 


A new drug for treating 
anaerobic, infections, a new 
breed of potato and one-man 
submersibles for deep-sea 
diving were recognised among 
the 19 Queen's Awards for 
Technology. 

The 91 export awards illus- 
trate ‘ in particular the 

tenacity of the country's 
major manufacturers in a 
period when many markets 
have, been weak and the 
strength of sterling has — until 
recently — hurt their competi- 


tiveness both at home and 
abroad. 

GEC Turbine Generators, 
for example, wins the award 
for the third year in a row, as 
90 per cent of ita £1.6bn order 
book now comes from export . 
orders, compared with only 
24 per cent in 1975. 

For' many manufacturers 
exports have made up Tor a 
stagnation or slump in home 
sales. 

u We took a £7m order from 
Singapore In 1980 on an 
extremely slender margin,” 
Mr Ron Graham of Pirelli, the 
eleetric cable maker; said. 
“But our home demand was 
so low that it afforded a useful 
base load." 

Faced with rapid decline of 
the UK market for steel scrap 
in the late 1970s, Coolers 


(Metals) opened shipping 
depots at 10 ports and built 
up exports from. £2.5m in 1976 
to £20m last year. 

Military equipment sup- 
pliers, including British Aero- 
space, Alvin and Richard 
Unwin, are prominent among 
the winners, as are subsi- 
diaries of major foreign 
groups, such as Michelm Tyre, 
Hughes Tool, Kodak and 
Smith Kline and French. 

The list includes some very 
small companies, sueb as Air- 
chaft and Instrument Demist- 
ing. which makes a chemical 
coating that prevents glass 
From Fogging. The company 
has six employees and turn- 
over of Sint a year, 96 per 
cent of which is exported. 

Invisible exporters arc well 
represented by a number of 


engineering consulting firms 
and the merchant bank, 
Morgan GrenfclL 

Video Arts takes an award 
for a series of industrial train- 
ing films starring John Cleese 
and other top comedians. 

- Whisky distillers, regular 
winners, are virtually absent 
this year because of the slump 
in trade. The one winner. 
Donald Fisher, a subsidiary 
of Distillers Company, has 
successfully revived a well- 
known brand, Yc Monks, in 
South American markets. But 
Mr John McCormack, manag- 
ing director, said only very 
little was sold in Argentina. 

The 19 awards for techno- 
logical achievement include 
an instance in which the 
development of one winner. 
City Technology’s oxygen 


sensor, is a component In 
another, the fuel efficiency 
monitor developed by Set- 
ironies. 

Two awards relate to aero 
engines. Rolls-ROyce win one 
for Improving the fnel 
economy on its RB2 11-524 
engines and Lucas Aerospace 
is recognised for ils engine 
re-heat nozzle and thrust 
reverse actuation systems. 

The number of applications 
for export awards reached fis 
lowest level, 818, since 1974 
hut Government officials sus- 
pect difficult trading condi- 
tions rather than lack oF 
interest were responsible. The 
number of applications for 
technology awards was little 
changed at 261. 


Details, Pages 2S-29 


Receivers in at Agemaspark 


BY ANDREW TAYLOR 


AGEMASPARK. the high tech- 
nology precision engineering 
company and bolder of the 
Queen's Award for Exports, has 
been placed in the hands of the 
receivers. 

The company is 49 per cent 
owned by the National Enter- 
prise Board. It says it is the only 
major British manufacturer of 
electro-discharge spark erosion 
machines, which are used in the 
manufacture of complex metal- 
working tools and dies. 

Agemaspark's customers have 
included a range of engineering 
and manufacturing companies 
such as Babcock International, 
British Aerospace, the Central 
Electricity Generating Board, 
Plessey, Rolls-Royce. Kodak.. 
Parker Pen, and Spear and 
Jackson. 

The receivers were appointed 


by the Midland Bank following 
a request to the bank from the 
directors of Agemaspark last 
Friday. 

The receivers are Mr Bernard 
Phillips and Mr Peter Phillips, 
of Bernard Phillips and Co. who 
will continue to run' Agema- 
spark as a going concern. They 
say, however that the business 
must be sold in the next three 
weeks. British and American 
companies are understood to be 
among potential purchasers: 

Agemaspark, employs 160 
workers at its High Wycombe 
factory in Buckinghamshire.' It 
started to run into trouble in 
19S0. a year after it had won the 
Queen's Award for Exports, the 
company’s turnover peaked at 
£6 .2m in 1979. with about 55 per 
cent of sales going to export 
markets. 


The company suffered losses 
of £1.8m in 1981, compared 
with pre-tax profits of £243,000 
in 1979. Turnover for the year 
was £3.2m. The sharp fall was 
because of the recession within 
the -British machine tool 
industry and a collapse of 
Agemaspark's main exports 
markets in Italy and South 
Africa. 

The National Enterprise 
Board injected a further £I.lm 
in equity capital into the com- 
pany last summer. This 
increased the NEB stake in 
Agemaspark from- 30 per cent 
(acquired in 1976) to 49 per 
cent. 

Agemaspark made a further 
approach to the NEB for finan- 
cial assistance at the beginning 
of this year but the NEB felt 
unable to help. 


Agemaspark has received 
almost £2m from the NEB in 
equity and loan finance. It has 
received a further £300,000 in 
public funds in the form of a 
grant from the Industry De- 
partment and development 
finance from the National Re- 
search Development Corpora- 
tion. 

A significant proportion of 
this money has gone towards 
development costs on a new 
wire spark erosion machine — 
the first such machine to be 
designed and built by a British 
company. 

The new development has 
attracted healthy interest at 
international trade fairs, but 
orders have remained slow, with 
much of the world's engineering 
industry in recession. 


Flexibility - 
call by Fed 
president 


By Stewart Fleming in Bonn 


BL reduces Mini Metro output 


BY LOftNE BARLING 


BL IS TO reduce output of 
Mini Metros at its Longbridge 
plant and cut the workforce by 
a further 500. 

The company said the move 
was because of recent over- 
production and a consequently 
high level of slocks. The cuts 
in the workforce are in addition 
to the 1,000 previously 
announced. 

The action is despite a surge 
in sales on the Continent, but 
the UK market is expected to 
contract overall this year and 
may cnfMetro sates below the 
110,000 level of 1981. BL said 
that .extra . demand expected , 
from the launch of new Metro 
models in the next two months 
could also be met without 
restoring any job cuts. Produc- 
tion levels were to be reviewed 
again in two months. 


BL maintains that the recent 
overproduction has been due 
to a higher level of output than 
expected because of improved 
efficiency, and that sales a re 
continuing at a high- level. 

Austin Rover said the manu- 
facturing programme for 
Metros had been set at slightly 
more than demand forecast. 
This was to allow for any pro- 
duction problems, but 98. per 
cent efficiency had - been 
achieved since the start- of the 
year instead of the expected: 94 
per cent 

Between 4,300 and 4,400 
Metros had been produced each 
•week" as .a result instead - ^ 'the 
4270 "required by the sales side 
oT BL. 

The company said it was, 
therefore, aiming to reduce pro- 
duction to 4,150 a week. It was 


seeking an additional 500 
redundancies because it wished 
to maintain 98 per cent effici- 
ency- The redundancies would 
be voluntary “if possible.’' 

The high level of stocks will 
be reduced in the coming 
months and decisions about 
future levels of output will then 
be made. About 11.500 "produc- 
tion workers are employed at 
Longbridge. 

BL’s . hopes of concluding a 
new industrial relations frame- 
work within the' company as a 
whole appeared to have been 
set back yesterday over warn- 
ings given recently . to senior 
union officials at Longbridge, 
and Cowley, Oxford. . 

Mr Jack Adams, the Long- 
bridge convenor, has been 
“ counselled " by management 


for his published statements on 
safety standards, said to be 
dama g in g to BL. And, Mr Brian 
Chambers, the AIJEWs senior 
steward, has been reprimanded 
for lateness and absenteeism. 

Mr Colin Willels, a member 
of the Longbridge works com- 
mittee, has also been counselled 
for allegedly misleading a mass 
meeting during the recent “ tea- 
break strike.” 

Mr Roy Fraser, of the AUEW 
in Cowley, faces a disciplinary 
hearing over claims about bad 
management, said to have been 
made to the Press. 

BL said last night: “We see 
no reason why an employee 
because he is a shop steward, 
should not . be required to 
observe the same standards of 
behaviour that all other 
employees are bound by.” 


Halewood Escort production halted again 


BY OUR LABOUR STAFF 


ESCORT car production at the 
£350m Ford plant at Balewood, 
was at a standstill yesterday 
for tbe second day running. 

The dispute, which has cost 
■nearly £l4m in lost production, 
began when IS workers in the 
metal-finishing area were taken 
off the payroll on Monday for 
refusing In work normally. 

About 300 workers in the 
body shop came out in sym- 
pathy. Management laid off 
5,000 men in the body construc- 
tion and assembly areas. 

' Talks over the 300 hourly-paid 
men on unofficial strike are not 
planned until Friday, according 
to Mr Bill Brodrick. of the 
Transport and General Workers’ 
Union. 

The 300 men say they are on 
“indefinite strike," but work 
continues in the press shop. 


maintenance areas and trans- 
mission plant 

Stockpiling cannot continue 
for long, and further lay-offs 
may become inevitable. 

The dispute has been simmer- 
ing for nearly a fortnight 
According to Mr Steve Broad- 
head, body plant convener, 
“ two groups of employees are 
laying claim to the same job.” 

The two groups are- quality 
control workers and production 
operators in the body shop. 

An interim agreement was 
reached last week giving the 
disputed work to quality control. 
That provoked the walkout by 
IS production, operators in the 
body shop. 

The company, said last night: 
“ These 18 men are flying in the 
face of an agreement drawn up 


between the company and their 
own district union officials.” 

The dispute has stopped pro- 
duction of about 2.500 cars. 

Better news for the company 
came from Eastbourne, where 
leaders of the Amalgamated 
Union of Engineering Workers, 
Ford's second largest union, 
indicated that their annual pay 
and conditions claim was likely 
to be relatively low. 

The national committee of 
the union drew back from sup- 
porting a resolution before the 
union's conference for a claim 
of £20 a week. This would have 
meant rises of 20 to 24 per cent 
on basic rates. 

The £20 target was urged by 
Mr Sid Ha it o way, convener at 
Dagenham, who - claimed that 
next Monday Ford would dis- 


close a 1981 profit of about 
£100m. 

Another Ford convener, Mrs 
Rita Gorostisaga. said tbe 
specific figure shoutd be deleted 
in favour of a more loose, but 
“ substantial ” claim. The move 
-was approved on ' Right-Left 
voting lines by 56 to 35. 

The overall claim, which in- 
cludes calls for improved pen- 
sions. a 35-hour week and revi- 
sion of the wages structure to 
replace the present five grades 
with a three-grade system, was 
carried by 79 to 12. 

Last year Ford workers offici- 
ally won a 7.8 per cent rise, 
though it is admitted in the 
company that in reality it was 
considerably higher, perhaps 
about 11 per cent. 

• AXJEW militants attack 
economic strategy Page 11 


Continued from Page 1 

Falklands 


settlement a sizeable group of 
Tory MPs is now reconciled to 
tbe use of armed force to expel 
the Argentines. 

Will lam Hall writes: There 
was a Continued firm tone in 
London's financial markets yes- 
terday reflecting further hopes 
that a solution to the Falkland 
Islands crisis will be found. 

' Money market rates fell for 
tbe second day running, with 
the three-month inter-bank rate 
shedding 1 to 13J-3 per cent. 

The weaker trend in .U.S. 
interest rates also contributed 
to the more confident mood, 
and three-month * Eurodollar 
rates shed nearly half-a-point. 

The dollar continued to 
weaken- ozr-the back of lower 
interest rates falling in London 
from DM 2.4155 to DM 2.3965 
and from Y245.S0 to Y242.8G 
against the Japanese currency. 

Sterling was one of the few 
currencies to close lower against 
the U.S. currency, finishing at 
S 1.7655. a net loss of 5 points 
on the day- Its trade weighted 
index fell 0.1 to 89.8. 

In the stock market equities 
continued. to move ahead with 
the FT Industrial Ordinary 
share index, closing 4.5 higher 
at 562.6. Gilt-edged stock were 
alsor firmer. - 


British Transport docks 
‘on the road to recovery’ 


BY ANDREW FISHER, SHIPPING CORRESPONDENT 


THE British Transport Docks 
Board, due for partial privatisa- 
tion later this year, slid further 
into the red in 1981 but 
returned to profit in the first 
quarter of 1982 and says it is 
” firmly on the road to 
recovery." 

Labour disputes at its main 
Southampton port were largely 
responsible for the pre-tax loss 
of £10ft!m in 1981 compared 
with a profit. pre-tax of £11.5m 
in 1980. 

Sir Humphrey Browne, the 
outgoing ebairman of BTDB. did 
not think the 1981 results would 
affect the government's aim of 
selling oer-'cent-of iheBoard 
to private investors. He warned 
that be 1* would strongly dis- 
approve of - a bargain- basement 
sale." 

It might however, affect the 
timing of the operation. The 
board mtght have to provide up- 
to-date figures in the share sale 
prospectus for the first half of 
1982. 

He said the hoard was now 
"satisfactorily profitable" with 
tonnage through the parts up 
by a quarter in the first three 


months of 1983 and revenues a 
fifth higher compared to last 
year. 

“All the indications are that 
the board is firmly on the road 
to recovery," he added. More 
containers were now handled at 
Southampton than before the 
disputes. 

The BTDB will not have the 
same heavy redundancy costs as 
last year when it paid £5m to 
non-dockers. 

Total redundancies were 1,300 
last year, and .Government 
delays in extending voluntary 
severance arrangements for 
registered dockers at London 
and Liverpool to other ports 
also cost the board about £6m. 

Mr Keith Stuart, the manag- 
ing director to succeed Sir 
Humphrey. in_ May (> said the 
upturn in trade had mainly 
shown in steel, coal and grain 
exports. 

The board said It was owed 
about £5.7ra by the British Steel 
Corporation for iron ore and 
coal imports through Pori 
Talbot but it has made no 
special provision for this 
amount in its accounts. . . 

OCX results, Page 26 


Continued from Page 1 


Acclaim 


Japanese products." he said, 
adding that “tbe Triumph 
Acclaim is one of the cases we 
are most concerned about” 


At a Turin Motor Show Press 
onference Slg Ghidella indicated 
that Fiat believed the “norm" 
for the European content of a 
car. before it could be sold as 
an EEC product, should be 
80 per cent 

He again urged EEC vehicle 
producers to develop a co-opera- 
tive European strategy to 
compete with Japanese and U-S. 
multinationals. 


Fiat is, however, experiencing 
difficulties arising from co- 
operation attempts in its deal- 
ings with Peugeot of. France 
over the joint production of a 
new lightweight car engine. 

Apparently,' the French insist 
that some production should 
take place in France. Tbe 
original concept seems to have 
been for the engine plant to be 
in southern Italy. 

Sig Ghidella said one solution 
being considered was for two 
plants, both producing- about 
250.000 engines, be set up, one 
in each country. 


THE DECLINE in world oil 
prices and the sharp reduction 
expected in the current account 
surpluses of the members of 
the Organisation of Petroleum 
Exporting Countries is allowing 
industrial countries to “breathe 
a little easier” and be more 
flexible in economic policy. Mr 
Anthony Solomon, president of 
the New York Federal Reserve 
Bank, said yesterday; 

Much of the reduction In the 
oil-induced current account 
deficits, however, will again 
tend to be concentrated among 
industrial nations, particularly 
West Germany and Japan, Mr 
Solomon Told the West German 
Society for Foreign Policy in 
Bonn yesterday. 

For this reason the world 
would still face a recycling 
problem to help developing 
countries finance continuing 
current account deficits, he said. 

Mr Solomon suggested that 
“only recently has Opec begun 
to act like an organised cartel 
on the production side.” addins 
that it still faced a “test of 
unity" in this respect. 

High real interest rates on 
their investments, the fact that 
several Opec countries were 
themselves heading for current 
account deficits and the possi 
bility that in the future dollar 
exchange rates might fall would 
add to tbe incentives for some 
oil producers to break ranks to 
try to increase thier oil earn 
ings. 

“The situation gives the 
industrial countries opportunity 
to exert leverage for more sus- 
tained downward pressure on 
world oil prices." 

Mr Solomon said the lifting 
of the oil constraint and the 
disappearance of the Opec sur- 
plus “ is not a sufficient condi- 
tion for resolving our economic 
problems." 

The U.S. had to move from 
recession to expansion without 
losing the hard-won progress on 
inflation, he said. This would 
require a better mix of fiscal 
and monetary policies. 



UK TODAY 

MAINLY dry and sunny. 
Light drizzle in the porth. 
London, England. Wales 
Dry, sunny periods with some 
cloud. Max. 15C to 17C (59F 
to 63F), 

Scotland, N. Ireland 

Sunny at first becoming 
cloudy with rain later. Max. 
10C to 13C (50F to 55 F). 
Orkney, Shetland 
Sunny intervals with out- 
breaks of rain and cloud. 
Max. 9C (48F1. 

Outlook: Mostly dry and sunny. 
Some cloud and rain in the 
north. 


WORLDWIDE 


Ajaccio 

F 

Y’day 
midday 
"C *F 
16 61 

) 

1 

iL. Ang.f 


Yday 
midday 
■C 'F 

Algiers 

F 

18 

64 Luxirtbg. 

F 

13 

56 

Amsdm. 

S 

11 • 

52 ! Luxor 





Aihena 

c 

19 

66 Madrid 

F 

17 

63 

Bahrein 


— - 

— 

I Majorca 

S 

18 

64 

BascJna. 

s 

17 

63 Malaga 

F 

18 

64 

B&mn 

F 

20 

6a| Malta 

F 

19 

66 

Belfast 

c 

10 

50 ■ Mchstr. 

F 

13 

55 

Bslgrd. 

c 

9 

48! 

'Melbne. 




Berlin 

c 

10 

50 1 Mx. C-t 






Bismw 

c 

14 

57; Miami# 






Brnghm. 

F 

14 

57 1 

1 Milan 

F 

14 

57 

Blackp’l 

c 

10 

50 

• Monir'lf- 


— 


Bprdjc. 

s 

19 

66; Moscow 

C 

8 

46 

Boulgn. 

F 

10 

50 1 Munich 

S 

10 

50 

Bristol 

s 

15 

59 -Nairobi 





Brussels 

5 

13 

55 Naples 

8 

16 

61 

Bud pal. 

C 

11 

52 'Nassau 




Cairo 


— 

— 

Nweetl. 

S 

U 

57 

Cardiff 

s 

15 

53 N York) 





Casbca 

5 

17 

63: Nice 

C 

.14 

57 

Cepe T. 
Chlcq.t 


- ■ 


I Nicosia 
[ Qpor.o 

s 

21 

70 

Cologne 

F 

14 

57 : Oslo 

s 

13 

55 

Cpnhgn. 

S 

8 

46 "Parts 

s 

15 

59 

Corfu 


— 

— 1 

Penh 

s 

24 

75 

Denwerf 

c 

-5 

23, Prague 
57:Ryk|Vk. 

F 

9 

48 

Dublin 

F 

H 

F 

5 

41 

Dbrvnfc. 

S 

15 

59 1 Rhodes 

S 

20 

88 

Ednbgh. 

C 

11 

52 1 

Rio J ot 


— 



Faro 

S 

20 

68 

Rome 

F 

15 

64 

Florence 

F 

17 

S3: 

Safzb'rg 

C 

10 

50 

FrankFt 

S 

14 

57 1 

S 'cuco t 


_ 


Funchal 

c 

IB 

&i 

S. M'rrtz 





Genovs 

s 

13 

55| 

Sinnepr. 

R 

28 

82 

Gibrltr. 

s 

19 

66JS’tiaoot 


— 

_ 

Gissg'w 

p 

12 

54; 

iStckhm. 

F 

9 

48 

G'rnsey 

s 

12 

54lStrasb'8 


— 

— 

Helsinki 

s 

4 

39 1 Sydney 


— 

— 

H. Kong 

c 

23 

73 -Tangier 

F 

19 

65 

Innsbr'k 

F 

9 

48;Tei Aviv 

F 

20 

B8 

InvrnsG, 

s 

11 

52 'Tenerila 

S 

20 

68 

l.o.Men 

c 

10 

SOTofryo 

S 

20 

68 

Istanbul 

R 

9 

48! Tor Hint 

R 

7 

45 

Jersey 

s 

U 

57 TuniB 

C 

18 

81 

Jo'burg 

s 

17 

63' 

Valencia 

s 

19 

68 

L. Pirns. 

s 

20 

68 ; Venice 

F 

14 

57 

Lisbon 

s 

IS 

66f Vienna 

R 

5 

41 

Locarno 

F 

14 

57 'Warsaw 

C 

5 

43 

London 

s 

13 

3S Zurich - 

F 

11 

52 

C — Cloudy. F— Fair, 

H— Bain. 

S — Sunny 

[Noon GMT temperatures. 



THE LEX COLUMN 


No accounting 



Monday’s official figures on 
company finances carried a gap- 
ing hole. £2£bn wide in lhe last 
quarter of 1981, between cor- 
porate cash flows and corporate 
borrowing. This discrepancy 
looks less mystifying in the 
light of the sort of exercise re- 
vealed in Thomas Tilling^ 1981 
accounts. Tilling's operations 
produced a cash inflow of £2m 
last year and the group spent 
a net £32m on acquisitions. 
Bank borrowings, however, are 
up by £10Sra. 

This figure partly reflects the 
growth — bv no means confined 
to Tilling— of the corporate 
treasury function. Tilling's De- 
cember balance sheet shows 
£1 03.1m in the gilt-edged mar- 
ket — a sum rather above the 
amounts raised by the last two 
rights issues and not far short 
of a quarter of tangible net 
worth. 

This important profit for loss) 
centre does not feature in the 
review of operations. But there 
is plenty of useful detail about 
small manufacturing businesses, 
and a pat on the back for Heine- 
mann. which published the 
award-winning "How far can 
you go ? " 

The same question might well 
be asked of the accountants 
about the way in which the trea- 
sury activities are presented. 
Running income on the gilt-, 
edged book is. of course, taken 
above the line; last year’s £2.6m 
rise in investment income to 
£l6.4m compares with a £2.9m 
increase in total pre-tax profits 
to £73.6m. 

But capital fluctuations are 
treated quite differently. The 
£l04.9m of listed investments 
are in the balance sheet at cost, 
but their market value in 
December was only £96. lm. The 
£S.Sm book loss does not appear 
in the profit and loss account, 
while realised losses, grouped 
under the heading “net deficit 
on divestment of undertakings 
and disposal of investments" 
and totalling £12m, are treated 
as extraordinary. 

Partly for reasons of tax- 
efficiency, Tilling’s borrowings- 
are mainly in dollars, so that 
while the gilt-edged book 
wilted, exchange movements 
increased debt by £42m last 
year. This rise is fully matched, 
however, by an uplift in operat- 
ing asset values. It all looks 
much more fun than quarrying. 


Index rose 4.5 to 562.6 




matched in the aecoad'lajf 

go by tbe board ^ Is" year. ' ' 

Aerospace profits^ an 
being affected bv the * 
of orders, while toe 
down of the Sooth .. Wl 
economy could weaken^ 
ditional prop frohi OvoT 
earnings. For a company. 
heavily involved in un® — 

industries. Smiths has 

able defensive strengths, 
after five years. of stagnant, 
fils, it badly needs to shows* 
evidence- ot growth. /Air -I 
night's price of S3 8p, 
yield a historic 4.5 -per eom.u 
look unlikely to break pat 
their recent namw 
range. ‘ 


Docks Board 


must have risen markedly In 
rhe past few days. A week ago, 
bullion reached almost £370 an 
ounce and it looked as if the 
chartists might at last be able 
to reverse the direction of their 
parallel lines. 

After falling further yester- 
day to S343.75. that hope 
seemed forlorn. The evidence.©/ 
physical demand, which pro- 
duced very high Krugerrand 
sales and shipments to Japan 
last month. has slowly 
evaporated. Even so. there is a 
general consensus that a price 
of around $300 now represents 
a solid resistance point. Early 
last month, that level looked 
verv vulnerable. 

For punters in the new gold 
futures market, the past fort- 
night has at least shown that 
gold retains its sensitivity to 
political unrest, a quality which 
looked in doubt during the 
Polish crisis. 


A swing from pre-tax 
of £21.5m to a. Joss of 
might be expected to.-l 
aspirations . for flotation. . 
the British Transport 
Board remains confident $ ’ 
will be offered to' the publfc _f 
later in the year. IB’ fact -the ' 
poor performance' can ' 

attributed largely to exception* u 
factors. The industrial' disputed 
at Southampton — now more or - , 
less settled — alone produced J? 
turnround of nearly £l4m. The’ - 
delay before, the, Gcreenhnerji 
extended ils revised severance : 
terms to the Board's ports corf ' 
£6ni in extra wages, 'while a 
£5m bill .for . redundabria 1 
should not be repeated;'- 


jjlliif'S H: 


y^- ■ 


Smiths Industries 


Gold 


If the gold price is any kind 
of diplomatic barometer, then 
the chances of a peaceful settle. 
Jt-ent to the Falklands crisis 


The tenor of yesterday’s 
interim report front Smiths 
Industries was markedly less 
optimistic than that of the 
chairman’s annual statement a 
few months ago. Demand in the 
UK is still very weak and the 
mimite profits on distribution 
say as much about the stock 
cycle as they do about the 
winter weather. 

Yet the reorganisation of the 
components business is already 
having some effect and there 
has been another very strong 
performance from the medical 
division. For the six months to 
January, pre-tax profits are 1Z 
per cent higher at £11.2m. This 
advance will certainly not be 


Meanwhile, the Board is talk-. 
ing confidently about a strong ; 
pickup in business in the past', 
couple of months: Southampton! - 
has won back all its major 
customers and is currently pro. 
cessing more containers that 
ever before. Elsewhere, steel - 
and coal exports arc well up. 

So. barring; the unforeseen, 
profits may exceed those : iff 7 
1980. giving the Board an oppor- 
tunity to. rebuild its depleted 
cash reserves. This, may be .ar' 
far cry from the £22im made in ‘ 
1979 when the Board had a tar- . 
get for 20 per cent return on 
capital. Nevertheless, the Board 
is the long term beneficiary tff 
the trade switch to lhe South 
and East coasts, and • its 
employee surplus is under cofl- 
trol- :By and large it has iirovefl ; 
capable of producing a reason-: 
able cash surplus; out of trading 
each year. With a. loss behind 
it, . and an apparent switch; id'; 
the Government’s priorities^:, 
from abstracting the marimam 
cash to disposal for its own safe*' 
— the company way be soldatfi::. 
very- attractive price. " . _ • - 




{SEW 




Tjjuchn"-‘ 


fauna c.: 


ADVERTISEMENT 


NEWS 

REVIEW 


BUSINESS 


£2m Network 
Order from 
British 
Telecom 


Ferranti Computer Systems 
has won orders totalling over 
£2 million, from British 
Telecom to supply two Argus 
computer-based PT7 con- 
troller networks for use in 
the Telecoms On-Line Data 
(TOLD) and tbe new Meehan-? 
ised Order Handling (MOH) 
systems. 


Further GTE link 


Ferranti and General Tele- 
phone & E lectronics Corpora- 
tion (GTE) announce a new 
marketing agreement follow- 
ing the establishment five 
months ago of the joint 
venture company, Ferranti 
GTE Ltd. Ferranti GTE 
manufactures and sells tele- 
communications equipment in 
the UK. Now Ferranti Cora- 
muni cat ion Systems Group 
will market GTE transmission 
equipment in the same area. 


Briefly ... 

A precision COM plotter, 
EP340, has been ordered by 
Quartech Design & Develop- 
ment Ltd from Ferranti Cetec 
Graphics. 

Electronic components includ- 
ing connectors, transformers, 
photo-diodes, photo-transistors 
and high power transistors 
are featured on tbe Ferranti 
stand, All-Electronics Show, 
Barbican Centre until 22nd 
April. 

Three microwave radio relay 
systems are to be supplied to 
British Telecom by Ferranti 
Communication Systems 
Group. 


AVIONICS 


Ferranti Queen’s Awards 


The Queen’s Award for 
Export has been won by the 
Navigation Systems Depart- 
ment nf Ferranti pic,. Edin- 
burgh for outstanding export 
performance during the past 
three years. 

The Queen’s Award for Tech- 
nological Achievement was 
also awarded to the Fer ranti 
Scottish Group for COMED 
(Combined Map and Elec- 
tronic Display), an advanced 
highly-versatile aircraft cock- 
pit display. Selected as part 
of the Bendix horizontal 
indicator in the U.S. Navy’s 
McDonnell Douglas F-18 air- 
craft COMED has also been 
specified for Canadian and 
Australian F-lSs. Over 400 
COMEDs of this type are on 


order. The U.S. plans te have, 
more than 1,000 F-18 aircraft 
in service. “ " 

The display, combines - *-> ■ 
moving map 7 with flight;.- - 
tactical or sensor information. y 
presented on one screed. A u; 
wide variety ■ of inf onnatidn\ 
is derived frorn the atrcrtft’sr 
sensors (such as TV. ratUr,‘_ 
navigation system, etc)' .or 
held in COMED’s . powerful. ; 
digital computer (for .exampto 
tactical information, airfield:, 
data or pilot - eiaergrfrcy- 
drillB). ' 

Fifty units have been- sut^ " 
plied for Indian. Air FoitSfe;-. 
Jaguars and British, Gdrm^-, 
and Italian Tornado- alrcftfk. 
are slIsd . equipped 
COMED. -- 


MICROELECTRON ICS 


Better Gain Control 


Thought to be the world's 
first temperature independent 
gain control element using 
thick film microcircuitry, the 
new Ferranti FER 225 has 
recently been introduced. It 
provides constant perform- 
ance in radar and conununi- ' 
cations IF and RF. amplifiers 
irrespective of ambient temp- 
erature. 

With conventional circuitry, 
control characteristics change 


with temperature tatdittg to - 
degradation of -system ' Jg*V 
formance. However, tbe-FKR 
225 operates' between '3^,5 . 
and +85^6, a rapge of .W 
with no notlceable^ehangft Ofr; 
control chararteristiics- : ■ ^.'- 7 
The new g ain . control .clamant , - 
. combines high reliability **^0 
low cost and small 
is available 

Microelectronics Crbup-.T'of - 
Edinburgh. . v„- 


news ss 





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‘ Noflroductioi) of contents of this newspaper m any manner a tint peii^ittsd without prior 
Registered at the Post Office. Printed by Sl Cfetnertt'a Pres® for .‘and pubiuhotf.. by the 
BrnCHen' House, Cannon Street, London. EC4P 4BY. V - TwIFfiwntirf' . .. 


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